A trader marks his goods 40% above cost price and allows a discount of 25%. The profit he makes is:

Answer: Option C

Let original CP = Rs. 100
Then, the Marked Price = 40% of 100 + 100 = 140
SP = 140 - 25% of 140 = 105
%Profit = $$\frac{5\times 100}{100}=5\%$$

Net Graphic Change Method:
100 == 40% UP ⇒ 140 == 25% discount ⇒ 105 So, % Profit = 5%