# What will be the Gain Percentage of Trader? If

A trader marks his items by increasing the price by 25%. If he gives 4% discount on the marked price, what will be his gain percentage?

- 20%
- 25%
- 10%
- 15%

**Answer: (1) 20%**

**Explanation:-
**Let the cost price of an item = Rs. 100

A trader marks his items by increasing the price by 25%.

Then, the mark price of an item = 100 + 100 x 25/100 = 125

He gives 4% discount,

Then, the selling price of the item = 125 – 125 x 4/100

= 125 – 5

= 120

Then, the profit = 125 – 100 = 20%

Hence, the answer is (1) 20%.