Question

A shopkeeper buys goods at $\frac{4}{5}$ of its marked price and sells them at $\frac{7}{5}$ of the marked price, find his profit percentage.

• A. 40%
• B. 50%
• C. 75%
• D. 70%

Answer 1

The correct option is C 75%

Given that,
Shopkeeper buys goods at$\frac{4}{5}$ of the market price and sells goods at $\frac{7}{5}$ of the market price.

Now,
Let, the market price be MP.

So,
Cost price = $\left(\frac{4}{5}\right)$MP
Selling price = $\left(\frac{7}{5}\right)$MP

Profit = Selling price - Cost price

= $\left(\frac{7}{5}\right)$MP - $\left(\frac{4}{5}\right)$MP

= $\left(\frac{3}{5}\right)$MP

Profit percentage
= (Profit / Cost Price) $\times$ 100
= [$(\frac{3}{5}$)MP / $\left(\frac{4}{5}\right)$MP ] $\times$ 100
= 75%

Hence, the shopkeeper makes a profit of 75%.