The cost of an article is Rs 500. A shopkeeper first marked it up 40%, then later marks the cost up 80% and gives a 20% discount. How much more or less money will the shopkeeper make now?

AMore by Rs 20 ✓ Correct

BLess by Rs 20

CMore by Rs 80

DNo extra profit

Correct answer: (A) More by Rs 20

Explanation

The shopkeeper now earns Rs 20 more.

First plan: mark up 40% on CP 500, SP = 700, profit = 700 - 500 = 200.

Second plan: raise cost 80%, marked = 500 x 1.80 = 900.

After a 20% discount, SP = 900 x 0.80 = 720, profit = 720 - 500 = 220.

Extra = 220 - 200 = 20 more.

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