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 per cent.

• A. $12\frac{2}{7}\%$
• B. $11\frac{2}{7}\%$
• C. $13\frac{2}{7}\%$
• D. $14\frac{2}{7}\%$

Answer 1

Answer: (D)

$14\frac{2}{7}\%$

Let $M.P$ is $Rs.x$

Rebate=$20\%$

Then the money shopkeeper spend on buying$=x-20\%ofx+300$

$\Rightarrow x-0.20x+300=0.80x+300$

$S.P=4160$(including sales tax)

Rate of sales tax$=4\%$

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

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

$\Rightarrow x+0.04x=4160$

$\Rightarrow 1.04x=4160$

$\Rightarrow x=\frac{4160}{1.04}=Rs.4000$

Profit$=4000-(.8\times 4000+300)=4000-3500=Rs.500$

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