A trader marked the price of his commodity so as to include a profit of 25%. He allowed discount of 16% on the marked price. His actual profit was -

Answer: Option A

Let Cost price be Rs. 100
Then,
Marked price = Rs. 125
Selling price = 84% of Rs. 125
$$\begin{array}{rl}& \text{ = Rs}\text{.}\left(\frac{84}{100}\times 125\right)\\ & =\text{Rs}\text{.105}\end{array}$$
∴ Profit % = (105 - 100)% = 5%