A shopkeeper marks an article 40% above its cost price and offers two successive discounts of 20% and 10% on the marked price. Find his net gain or loss percentage.
In-Test AI Hint (Level 1)
Set Cost Price = 100 so Marked Price = 140. Apply the two scale factors (0.80 and 0.90) sequentially to 140.
Setter-Trap (Linear Subtraction of Discounts from Markup%)
Rushed candidates compute 40% - (20% + 10%) = 10%, ignoring that both discounts apply sequentially to the Marked Price (140), not to the Cost Price (100).
Exam-Hall Shortcut
CP = 100 -> MP = 140 -> SP = 140 x 0.80 x 0.90 = 100.80 -> 0.80% gain.