Multiple choice

A shopkeeper buys an article for Rs. 400 and marks it for sale at a price that gives him 80% profit on his cost. He gives 15% discount on the marked price to his customer. Calculate the actual profit (in percent) made by the shopkeeper.

  1. 53%

  2. 47%

  3. 50%

  4. 60%
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A Correct answer
Explanation

Cost price = 400. Marked price = 400 * 1.80 = 720. Selling price = 720 * (1 - 0.15) = 720 * 0.85 = 612. Profit = 612 - 400 = 212. Profit percent = (212 / 400) * 100 = 53%.

AI explanation

The marked price is calculated as Cost Price multiplied by 1.80, which gives 400 multiplied by 1.80, equal to Rs. 720. The shopkeeper gives a 15% discount on this marked price, making the selling price 720 multiplied by 0.85, which equals Rs. 612. The actual profit is 612 minus 400, resulting in Rs. 212. The profit percentage is (212 / 400) multiplied by 100, giving a 53% profit.

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