Multiple choice

A trader has a weighing balance that shows $1,200gm$ for a kilogram. He further marks up his cost price by $10$%. Then the net profit percentage is

  1. $32$%
  2. $23$%
  3. $31.75$%
  4. $23.5$%
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A Correct answer
Explanation

The trader uses a balance showing 1200g for 1000g, effectively gaining 200g per 1000g (20% gain). Adding a 10% markup on top of this, the total profit is calculated as (1 + 0.20) * (1 + 0.10) - 1 = 1.32 - 1 = 32%.

AI explanation

Let the cost price of 1 kg be 100. He marks up the price by 10%, making the marked price 110. His faulty balance shows 1,200 grams instead of 1 kg, so he actually gives only 1000 grams while charging for 1200 grams at the marked rate, making his selling price 1.2 times 110, which equals 132. The net profit percentage is calculated as (132 minus 100) divided by 100 times 100, resulting in 32%.

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