A cell phone was marked at 40% above the cost price and a discount of 30% was given its marked price. Find the gain or loss percent made by the shopkeeper.

Question

explain me with steps please

Answer 1

Another way to look at is that the phone was marked up 40% (multiply original price by 1.4), and then marked down 30% (multiply new price by .7):

 

So final price is: 1.4 x .7 = .98 times original price for a 2% loss

 

Answer 2

The original marked price was 40% above the cost price, or 1.4 times the cost price.

 

The discount of 30% was applied to the marked price, so that would be a discount of 30% of 1.4 times the cost price.  So the discount is .3 * 1.4 times the cost price, or .42 times the cost price.

 

So the discounted price is the original marked price (1.4 times the cost price) minus the discount (.42 times the cost price), which is .98 times the cost price.

 

So the shopkeeper is losing .02 of the cost price, or 2%.