Question

A dealer purchased a chair marked at a MRP of Rs. 600 after two successive discounts of 15% and 20%. If he spent Rs 28 on its maintenance and sold it for Rs. 545 after two weeks, find his profit %.
1. 30%
2. 15%
3. 20%
4. 25%

Answer 1

Correct Answer - Option 4 : 25%

Given-     

MRP = Rs. 600

1st Discount = 15%, 2nd Discount = 20%

Cost on maintenance = Rs 28

SP = 545

Formula Used-

Discount% = (MP – SP)/MP × 100  [where MP = Marked Price and SP = Selling Price] 

Profit% = (SP - CP)/CP × 100       [where CP = Cost Price and SP = Selling Price]

Calculation-

SP = 600(1 - 15%)(1 - 20%)

⇒ 510 × (1 - 20%)

⇒ Rs 408

This price is Cost Price for the shopkeeper. 

After maintenance cost of Rs 28, the Cost Price becomes Rs. 436

Now, Profit% = (545 - 436)/436 × 100

⇒ 1/4 × 100

∴ His profit% is 25%.