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A trader marks his goods 40% above cost price and allows a discount of 25%. The profit he makes is:

a) 15%
b) 10%
c) 5%
d) 2%

Answer: c
Explanation: Let original CP = Rs. 100
Then, the Marked Price = 40% of 100 + 100 = 140
SP = 140 – 25% of 140 = 105
%Profit = $$\frac{{5 \times 100}}{{100}} = 5\% $$

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