Multiple choice

A shopkeeper buys pencils at the price of Rs. 180 a dozen. Then, he marks up the price of each pencil by 20%. If he offers 2 consecutive discounts of 10%, what is his overall profit/loss percentage?

  1. 2.8 % loss

  2. 2.8% profit

  3. 1.4 % profit

  4. 5.6% loss

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Cost price per pencil = Rs. 180/12 = Rs. 15. Marked price = Rs. 15 × 1.20 = Rs. 18. Two consecutive discounts of 10% mean final price = Rs. 18 × 0.90 × 0.90 = Rs. 18 × 0.81 = Rs. 14.57. Loss per pencil = Rs. 15 - Rs. 14.57 = Rs. 0.43. Loss percentage = (0.43/15) × 100 = 2.87% ≈ 2.8%.

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