Question

A trader calculates his profit on the selling price and says it is 20%.find the actual profit percentage.

Answer 1

According to question

the profit calculated by the trader on selling price is 20%.

let selling price be x and

let cost price be y

⇒  (x-y)/x *100 = 20              

(x-y)/x=20/100

(x-y)/x=1/5

5(x-y)=x

5x-5y=x

4x=5y

X=5y/4      .....(a)

now calculating the real profit

⇒ ((x-y)/y)*100            .......((sp-cp)/cp*100= profit )

= ((5y/4)-y)/y*100        ......(from eqn a)

=((y/4)/y)*100

=(1/4)*100

=25%

hence actual profit made by the trader is 25%.