### A tradesman marks his goods at 25% above the cost price and allows purchasers a discount of $\frac{25}{2} \%$, his profit is:

A. 8% B. 8.5% C. 8.625% D. 9.375% Answer: Option D
Let his CP = Rs. 100. Marked Price = 100 + 25% of 100 = 125. Now, discount = $\frac{25}{2} \%$ on MP So, SP = 125- $\frac{25}{2} \%$ of 125 = Rs. 109.375. %Gain = 9.375%. Alternate method: 100(CP) == 25% Up ⇒ 125(MP) == 12.5%down ⇒ 109.375 %Profit = 9.375%