Question

A shopkeeper marks his products at 20% above the cost price and then allowed a discount of 5% for the cash payment to his customers what profit does he make if he received in rupees 2128 after paying the discount?

Answer 1

The profit of the shopkeeper is 261.33 Rs.

Step-by-step explanation:

Let the cost price be x Rs.

Then marking 20% above the cost price means the marked price $x(1 + \frac{20}{100}) = 1.2x$.

Again, giving 5% discount on the marked price then selling price becomes

$1.2x(1 - \frac{5}{100}) = 1.14x$

Now, given that 1.14x = 2128

⇒ x = 1866.67 Rs.

So, the profit of the shopkeeper is (2128 - 1866.67) = 261.33 Rs. (Answer)