A trader marks his goods 30% above the cost price and then allows a discount of 12%. What is his profit percentage?

The correct option is 14.4%.

Step-by-step Explanation:

Step 1: Assume a base Cost Price (CP)

Let the Cost Price of the goods be 100.

Step 2: Calculate the Marked Price (MP)

The trader marks his goods 30% above the cost price.

$\text{Marked Price (MP)}=\text{Cost Price}+(30\%\text{of Cost Price})$

$\text{MP}=100+30=130$

Step 3: Calculate the Selling Price (SP) after Discount

The trader allows a discount of 12% on the Marked Price (MP).

$\text{Discount}=12\%\text{of 130}$

$\text{Discount}=\frac{12}{100}\times 130=15.6$

Now, calculate the Selling Price (SP):

$\text{Selling Price (SP)}=\text{Marked Price}-\text{Discount}$

$\text{SP}=130-15.6=114.4$

Step 4: Calculate the Profit Percentage

$\text{Profit}=\text{Selling Price}-\text{Cost Price}$

$\text{Profit}=114.4-100=14.4$

Since the base Cost Price is 100, the profit percentage is direct:

$\text{Profit Percentage}=(\frac{\text{Profit}}{\text{Cost Price}}\times 100)\%$

$\text{Profit Percentage}=(\frac{14.4}{100}\times 100)\%=14.4\%$

Therefore, the trader makes a profit of 14.4%.