Question

A shopkeeper buys an article at a rebate of 20% on its marked price and then spends Rs. 300 on its transportation, etc. If he sells the article for Rs. 4,160 (Including sales tax at the rate of 4% of the marked price), find the shopkeeper’s profit as per cent.

Answer 1

Sale price including sales tax = Rs. 4,160
Let sale price = Rs. y
Rate of sales tax = 4%
∴ y + 4% of y = Rs. 4160
⟹ `y+y/25` = Rs. 4,160

⟹`(26y)/25` = Rs. 4160

⟹ `y= Rs.(4,160xx25)/25 = Rs. 4,000  `

Purchase price = Rs. 4,000 − 20% of Rs. 4,000

=Rs. 4,000 – Rs. 800= Rs. 3,200

Extra expense = Rs. 300

Then total cost price = Rs. 3,200 + Rs. 300 = Rs. 3,500

His profit = Rs. 4,000 – Rs. 3,500 = Rs. 500

∴ Profit% `="profit"/"cost price"xx100%`

                `= 500/(3,500)xx100%=100/7%= 14 2/7%` Ans