Multiple choice

A shopkeeper buys an article at a rebate of 20% on its marked price and then spends Rs. 300 on its transportation, etc. If he sells the article for Rs. 4,160 (including sales tax at the rate of 4% of the marked price), find the shopkeeper's profit as per cent.

  1. $\displaystyle 12\frac{2}{7}\%$
  2. $\displaystyle 11\frac{2}{7}\%$
  3. $\displaystyle 13\frac{2}{7}\%$
  4. $\displaystyle 14\frac{2}{7}\%$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let marked price be M. Cost price = 0.8M + 300. Selling price = 4160. Sales tax is 4% of M, so the net revenue is 4160/1.04 = 4000. Profit = 4000 - (0.8M + 300) = 3700 - 0.8M. This problem is underspecified as M is not given; however, assuming the sales tax is included in the 4160, the calculation leads to 14 2/7% if M=3500.

AI explanation

Let the marked price be 100, making the shopkeeper's cost price 80 after a 20 percent rebate. He spends 300 on transportation, but since the selling price including a 4 percent sales tax on the marked price is 4160, the marked price must be 4000. The cost price for the shopkeeper becomes 80 percent of 4000 plus 300, which is 3500. The selling price excluding tax is 4000, so the profit is 500, and the profit percentage is 500 divided by 3500 multiplied by 100, resulting in 14 and two-sevenths percent.

Keep practicing — related questions