Multiple choice

A man sells his goods at a certain price, 20% of which is his profit. If the price at which he buys the goods increases by 10% and he sells them at an 8% higher price, then what will be his profit percent (correct to one decimal place)?

  1. 21.8

  2. 23.4

  3. 21.4

  4. 17.8%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let the cost price be 100. Profit is 20, so selling price is 120. New cost price is 110 (10% increase). New selling price is 120 * 1.08 = 129.6. New profit is 129.6 - 110 = 19.6. Profit percent is (19.6 / 110) * 100 = 17.818%, which rounds to 17.8%.

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