Question

A shopkeeper buys an article at a rebate of $20\%$ on the printed price. He spends Rs. $40$ on transportation of the article. After charging a sales tax of $7\%$ on the printed price, he sells the article for Rs. $1,070$. Find his gain as per cent.

• A. $4\frac{1}{16}$%
• B. $11\frac{1}{13}$%
• C. $14\frac{1}{20}$%
• D. $19\frac{1}{21}$%

Answer 1

Answer: (D)

$19\frac{1}{21}$%

Let printed price of the article be Rs. $x$
According to the given statement:
$x\left(\frac{100+7}{100}\right)=1070$

$\Rightarrow x=1000$
$\therefore$ Printed price of the article $=Rs.1,000$
Given, that the shopkeeper buys the article at $20\%$ rebate
$\therefore$ For the shopkeeper, C.P. of the article $=Rs.1,000-20\%$ of Rs. $1,000=Rs.800$
Since, he spends Rs. $40$ on the transportation of the article
$\Rightarrow$ Total (actual) cost price $=Rs.800+Rs.40=Rs.840$
The selling price (excluding sales tax) $=$ Printed price$=Rs.1,000$
$\Rightarrow$ Profit $=Rs.1,000-Rs.840=Rs.160$
And, Profit $\%=\frac{160}{840}\times 100\%$

$=19\frac{1}{21}$%