Question

Mobit bought an article for Rs 2,500 and sold it at 25% above its cost. If 4% of the selling price is paid by Mohit as the tax; find Mobit's net profit on the whole transaction.

Answer 1

Given, $C.P.=Rs2,500$
and S.P. $=125$ % of $C.P.=\frac{125}{100}\times 2,500=Rs3,125$
As $4$ % of the S.P. is paid as tax, amount paid as tax $=\frac{4}{100}\times 3,125=Rs125$
So, actual Profit $=S.P.-C.P.-tax=Rs3,125-Rs2,500-125=Rs500$
And Profit % $=\frac{Profit}{C.P}\times 100=\frac{500}{2.500}\times 100=20$ %