A dealer marks his goods at 20% above the cost price and allows a discount of 16% on the marked price. What is his gain
Marking 20 percent above cost makes marked price 120 for cost 100. Sixteen percent discount multiplies by 0.84 giving selling price 100.8. Gain is 0.8 over 100, i.e., 0.8 percent profit margin after markup and discount adjustments.
Ref: R S Aggarwal, Quantitative Aptitude, Chapter 10 Profit and Loss, explains marked price above cost price and discount effect yielding gain percent formula MP into 1 minus discount, published by S Chand and Company.