Question

A shopkeeper buys an article at a rebate of 20% on its marked price and then spends Rs. 300 on its transportation, etc. If he sells the article for Rs. 4,160 (including sales tax at the rate of 4% of the marked price),find the shopkeeper's profit as percent.

• A. $10\frac{1}{5}$%
• B. $11\frac{3}{2}$%
• C. $14\frac{2}{7}$%
• D. $15\frac{6}{5}$%

Answer 1

The correct option is C $14\frac{2}{7}$%

Let the marked price be Rs.x

Then shopkeeper sell the article for rs.4160 including tax at the rate of 4% of the marked price

$\therefore x+4\%ofx=4160$

$\Rightarrow x+\frac{4}{100}x=4160$

$\Rightarrow \frac{104x}{100}=4160$

$\Rightarrow x=\frac{4160\times 100}{104}=Rs.4000$

Shopkeeper buys the article at a rebate of 20% on its marked price

$\therefore$Cost of the article$=4000-20\%of4000$

$\Rightarrow 4000-\frac{20}{100}\times 4000$

$\Rightarrow 4000-800=Rs.3200$

Then he spend Rs.300 on transportation

$\therefore$Total cost price$=3200+300=Rs.3500$

Shopkeeper sell the article at marked Price= Rs.4000

Profit$=4000-3500=Rs.500$

Profit %$=\frac{500}{3500}\times 100=14\frac{2}{7}$%