Question

A shopkeeper calculate percentage profit on the buying price and another on the selling price. What will be their difference in profits if both claim a profit of 25% on goods sold for Rs. 4000?

Answer 1

profit = 25%

cp = 4000

profit = p/cp × 100

= 25 /4000× 100

= 5/8

1.6 % is the loss

Answer 2

CP of prize = sp ×100/100+profit

=4000×100/125

=Rs3200

SP= CP/100×100+25

=4000/100×125

=Rs 5000

differences =Rs(5000-3200)

= Rs 1800