A merchant who marked his goods up by 50% subsequently offered a discount of 20% on the marked price. What is the percentage profit that the merchant made after offering the discount?
Select the correct option: A) 30% B) 125% C) 25% D) 20% E) 16.66%
Explanatory Answer   The easiest way to solve these kinds of problems is to assume a value for the merchant's cost price.   To make calculations easy, it is best to assume the cost price to be $100.   The merchant marks his goods up by 50%.   Therefore, his marked price (quoted price) = cost price + mark up.   Marked price = $100 + 50% of $100 = 100 + 50= 
<gadget id="calculator">100 + 50</gadget>
<output>150</output>
$150.   The merchant offers a discount of 20% on his marked price.   Discount offered= 20% of 150 = $30.   Therefore, he finally sold his goods for $150 - $30 = $ 120.   We assumed his cost to be $100 and he sold it finally for $120.   Therefore, his profit   150 -  30= 
<gadget id="calculator">  150 -  30</gadget>
<output>120</output>
$ 120.   We assumed his cost to be $100 and he sold it finally for $120.   Therefore, his profit= $20 on his cost of $ 100.   Hence, his % profit = profit/cost price * 100 = 20/100 * 100= 
<gadget id="calculator">20/100 * 100</gadget>
<output>20</output>
20%.   Choice 20%
<result>D</result>
A merchant who marked his goods up by 50% subsequently offered a discount of 20% on the marked price. What is the percentage profit that the merchant made after offering the discount?