A trader marks an article 40% above its cost price and then allows a discount of 25% on the marked price. What is the profit percentage?

Explanation

1. 01

   Take the cost price as 100.

2. 02

   Marking it 40% above cost gives a marked price of 140.

3. 03

   The discount is taken off the marked price: $140 \times 0.75 = 105$, so the selling price is 105.

4. 04

   Profit is $105 - 100 = 5$ on a cost of 100, which is 5%.