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Question
An article costs Rs. 2000 to a manufacturer who lists its price at Rs. 2500. He sells it to a trader at a discount of 5%. The trader gets a further discount of 5% for cash payment. Find the amount that the trader pays to the manufacturer and the profit percent that the manufacturer makes on the sale.
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Solution
List price of the article = Rs.2500
C.P. of the article = Rs.2000
S.P. of the article at 5% discount
= Rs.2500 - 5% of Rs.2500
= Rs.2500 - `(5)/(100) xx "Rs."2500`
= Rs.2375
Since trader gets a 5% additional discount for cash payment,
so, amount paid by the trader
= Rs.2375 - 5% of Rs.2375
= Rs.2375 - `(5)/(100) xx "Rs."2375`
= Rs.2375 - Rs.118.75
= Rs.2256.25
Profit made by the manufacturer
= List price - S.P.
= Rs.2500 - Rs.2256.25
= Rs.243.75
So, profit%
= `"profit"/"C.P." xx 100`
= `(243.75)/(2000) xx 100`
= 12.18%
Hence, the amount that the trader pays is Rs.2256.25 and the profit% that the manufacturer makes on the sale is 12.18%.
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