Multiple choice

An article costs Rs. $1,050$ to a manufacturer who lists its price at Rs. $1,200$. He sells it to a trader at a discount of $5\%$. The trader gets a further discount of $5\%$ for cash payment. Calculate the profit percent that the manufacturer makes on the sale.

  1. $\displaystyle 3\frac{1}{7}\%$
  2. $\displaystyle 3\frac{1}{8}\%$
  3. $\displaystyle 2\frac{1}{7}\%$
  4. none of these

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A Correct answer
AI explanation

The manufacturer's cost is Rs. 1,050, and the list price is Rs. 1,200. He sells at 5 percent discount, which means the selling price is 1200 times 0.95, equaling Rs. 1,140; the further discount for cash payment only affects the trader, not the manufacturer's sale price. The profit is 1140 minus 1050, which is 90, and the profit percent is 90 divided by 1050 multiplied by 100, equaling 3 and one-seventh percent.