Markup and Discount Calculation

To calculate the profit percentage, we need to understand the concepts of markup and discount.

Markup:
The trader marks the goods 40% above the cost price. This means the selling price is 140% of the cost price.

Discount:
The trader gives a discount of 20% on the marked price. This means the selling price is reduced by 20%.

Calculation of Selling Price

Let's assume the cost price of the goods is $100.

Markup:
The trader marks the goods 40% above the cost price, so the marked price would be:
$100 + ($100 * 40%) = $100 + $40 = $140

Discount:
The trader gives a discount of 20% on the marked price, so the selling price after the discount would be:
$140 - ($140 * 20%) = $140 - $28 = $112

Calculation of Profit Percentage

Profit:
To calculate the profit, we need to find the difference between the selling price and the cost price:
Profit = Selling Price - Cost Price
Profit = $112 - $100 = $12

Profit Percentage:
To calculate the profit percentage, we divide the profit by the cost price and multiply by 100:
Profit Percentage = (Profit / Cost Price) * 100
Profit Percentage = ($12 / $100) * 100 = 12%

Therefore, the profit percentage in this case is 12%.

Conclusion

The trader marks his goods 40% above the cost price and gives a discount of 20% on it. The profit percentage is calculated by finding the difference between the selling price and the cost price, dividing it by the cost price, and multiplying by 100. In this case, the profit percentage is 12%.