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Difficulty: MediumFinancial Mathematics (Interest, Profit, Loss, and Depreciation)

A trader bought a set of solar panels for ₦160,000\text{₦}160,000. He marked up the cost price by 25%25\% to fix the marked price. During a trade fair, he offered a 10%10\% discount on the marked price. What is his net profit in Naira?

Answer: 20000 Naira

Answer

The net profit made by the trader is ���20,000.
First, find the marked price by adding a 25% markup to the cost price: ₦160,000 × 1.25 = ₦200,000. Next, calculate the selling price after a 10% discount on the marked price: ₦200,000 × 0.90 = ₦180,000. Finally, subtract the cost price from the selling price to find the net profit: ₦180,000 - ₦160,000 = ₦20,000.

Step-by-Step Solution

1
Calculate the marked price
Marked Price = ₦200,000
The marked price is 125% of the original cost price of ₦160,000.
2
Calculate the selling price after discount
Selling Price = ₦180,000
A 10% discount reduces the marked price by ₦20,000.
3
Determine the net profit
Net Profit = ₦20,000
Net profit is the difference between the selling price (₦180,000) and the cost price (₦160,000).

Key Concept

Markup, Discount, and Profit Calculations
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Topics

Financial Mathematics (Interest, Profit, Loss, and Depreciation)

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