Multiple choice

If a shopkeeper sells a watch for Rs. $ 552$, he will make a profit of $15\%$. If he allows a discount of $5 \%$ for cash payment his actual profit percentage is:

  1. $10\%$
  2. $5\%$
  3. $14.5\%$
  4. $9.25\%$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Selling price = 552, profit = 15%. Cost price = 552 / 1.15 = 480. If 5% discount is allowed on 552, new SP = 552 * 0.95 = 524.4. Profit = 524.4 - 480 = 44.4. Profit % = (44.4 / 480) * 100 = 9.25%.

AI explanation

First, find the cost price by dividing 552 by 1.15, which gives a cost price of 480. Applying a 5 percent discount to the selling price of 552 results in a new selling price of 524.40. The actual profit is 524.40 minus 480, which equals 44.40, and dividing this profit by 480 and multiplying by 100 yields an actual profit of 9.25 percent. The answer is 9.25 percent.