Multiple choice

A shopkeeper marks up the price of the product by y% and offers 15% discount on it. As a result, he earns 25% profit. If the shopkeeper marked up the price by 150% and got y% discount, then what will be the percent profit of the shopkeeper?

  1. 33.15%

  2. 32.35%

  3. 31.54%

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let CP = 100. Selling Price = 125. Marked Price (MP) = 125 / (1 - 0.15) = 125 / 0.85 = 147.058. Markup y% = 47.058%. New MP = 100 * 2.5 = 250. Discount y% = 47.058%. New SP = 250 * (1 - 0.47058) = 250 * 0.52942 = 132.35. Profit = 32.35%.

AI explanation

Using the successive discount formula, (1 + y/100)(0.85) = 1.25, which gives y = 47.06. If the markup is 150 percent, the marked price becomes 2.5 times the cost price. Applying a discount of 47.06 percent, the selling price is 2.5 * (1 - 0.4706) = 1.3235 times the cost price, resulting in a profit of 32.35 percent.

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