Multiple choice

A shopkeeper purchased 300 pens and sold one out of four pens at no loss or profit. He sold the remaining pens at a profit of 20 %. What is his overall profit or loss percent on the whole transaction ?

  1. 15 % profit

  2. 15 % loss

  3. 12 % profit

  4. 12 % loss
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let total pens = 400 (for easy math). 1/4 = 100 pens sold at 0% profit (0 profit). Remaining 300 pens sold at 20% profit. Total profit = 300 * 0.20 * CP = 60 * CP. Overall profit % = (60 * CP) / (400 * CP) = 60/400 = 15%.

AI explanation

Out of 300 pens, 75 (one out of four) are sold at no profit or loss, while 225 are sold at a 20% profit. Assuming the cost price of each pen is Re 1, the total cost is Rs 300 and the total revenue is 75 + (225 * 1.2) = Rs 345. Using the profit percentage formula, ((345 - 300) / 300) * 100, the overall profit is 15%.

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