Question

A shopkeeper buys an article for ₹ 300. He increases its price by 20% and then gives 10% discount on the new price. Find:
(i) the new price (marked price) of the article.
(ii) the discount is given by the shopkeeper.
(iii) the selling price.
(iv) profit percent made by the shopkeeper.

Answer 1

C.P. of an article = ₹ 300

Increase in price = 20%

(i) ∴ Marked price (M.P.)

`= ("C.P." xx (100 + "increase%"))/100`

`= ₹ (300(100 + 20))/100`

`= ₹ (300 xx 120)/100 = ₹ 360`

(ii) Rate of discount = 10%

Amount of discounts

`= ₹ (360 xx 10)/100 = ₹  36`

(iii) Selling price = M.P. - discount

= ₹ 360 - 36 = ₹ 324

(iv) Net profit to the shopkeeper

= S.P. - C.P. = Rs. 324 - 300 = Rs. 24

Gain % = `("gain" xx 100)/"C.P." = (24 xx 100)/300 = 8%`