A trader marked a jacket 35% above its cost price. He allowed a discount to a customer, resulting in a profit of 20%. What was the rate of discount given by the trader?

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1. Let cost be $C$. Marked price = $1.35C$.  
2. After a discount $r$, selling price = $1.35C(1-r)$.  
3. For 20% profit: $1.35C(1-r)=1.20C$. Divide by $C$: $1.35(1-r)=1.20$.  
4. So $1-r=1.20/1.35=8/9$. Thus $r=1-8/9=1/9=11.11\%$.

FINAL_ANSWER: a

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