Question

A shopkeeper marks his goods at $40\%$ above the cost price but allows a discount of $5\%$ for cash payment to his customers. What actual profit does he make, if he receives $Rs.1064$ after giving the discount?

Answer 1

Let the original cost price of the item be $Rs.x.$

Given: Discount $\%=5\%$

$S.P=Rs.1064$

$M.P=x+\frac{40x}{100}=1.4x$

Discount $=M.P-S.P$

$S.P=\frac{100-Discount\%}{100}\times M.P$

$\Rightarrow \frac{100-5}{100}\times 1.4x=1064$

$\Rightarrow \frac{95}{100}\times 1.4x=1064$

$\Rightarrow 0.95\times 1.4x=1064$

$\Rightarrow 1.33\times x=1064$

$\Rightarrow x=\frac{1064}{1.33}$

$\Rightarrow x=800$

Profit $=S.P-C.P=Rs.(1064-800)=Rs.264$

Thus, the actual profit by the shopkeeper is $Rs.264.$