RRB ALP CBT I 16 Feb 2026 Shift 2 Paper

Concept:The net effect of a mark-up followed by successive discounts is found by multiplying the cost price by the combined factor of the mark-up and the discount percentages.Explanation:Let the cost price be $\text{CP} = \text{Rs. }100$.Since the mark-up is 40%, the marked price is $MP = 100 + 40\% \times 100 = ₹140$.Apply the first discount of 10%: $140 - 10\% \times 140 = 140 - 14 = \text{Rs.}126$.Apply the second discount of 5% on ₹126: $126 - 5\% \times 126 = 126 - 6.3 = \text{Rs.}119.7$.Thus the selling price is $\text{SP} = \text{Rs. }119.7$.Profit is $\text{SP} - \text{CP} = 119.7 - 100 = \text{Rs. }19.7$.Profit percentage is $\frac{Profit}{CP} \times 100 = \frac{19.7}{100} \times 100 = 19.7\%$.Shortcut: Combined multiplier = $1.40 \times 0.90 \times 0.95 = 1.197$.So net profit percentage = $(1.197 - 1) \times 100 = 19.7\%$.Answer:The shopkeeper earns a profit of $19.7\%$, so the correct option is C.