Multiple choice

A vendor purchases 6 bananas for Rs. 5. When selling them, he increases the marked price by 50% and offers a 20% discount. What will be the profit percentage of selling 6 dozen bananas?

  1. 16.67%

  2. 20%

  3. 25%

  4. 12.5%

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Cost price of 6 bananas = Rs 5. Marked price = 5 * 1.5 = 7.5. Selling price after 20% discount = 7.5 * 0.8 = 6. Profit on 6 bananas = 6 - 5 = 1. Profit percentage = (1/5) * 100 = 20%. The quantity (6 dozen) does not change the percentage.

AI explanation

The vendor marks up the bananas by 50%, making the marked price 150% of the cost price, and then offers a 20% discount. Using the effective selling price formula, the final selling price becomes 80% of the 150% cost price, which equals 120% of the cost price. This produces a profit of 20 percent, making the final result 20%.