A retailer purchased radiosets at the rate of Rs. 400 each from a wholesaler. He raised the price by 30% and then allowed a discount of 8% on each set. His profit will be = ?

Answer: Option D

Initial CP = 400
After marking 30% up, marked price = 520
He allowed a discount of 8%, discount = 41.6
Selling price = 520 - 41.6 = 478.4
$$\begin{array}{rl}& \%\text{profit}=\frac{\left(478.4-400\right)}{400}\times 100\\ & =\frac{78.4\times 100}{400}\\ & =\frac{7840}{400}\\ & =19.6\%\end{array}$$