# An article is purchased after 12.5% discount. The shopkeeper marked its price 40% above its cost price and offers a flat discount of 5%. What will the

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An article is purchased after 12.5% discount. The shopkeeper marked its price 40% above its cost price and offers a flat discount of 5%. What will the profit percentage for the shopkeeper?
1. 25%
2. 16.67%
3. 33.33%
4. 33%

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Correct Answer - Option 4 : 33%

Given:

The article is purchased after 12.5% discount then its price is marked up by 40% and finally 5% discount is offered.

Concept:

Discount is given on marked price and the price decided after discount will be the selling price.

Formula used:

Discount = [(100 – D%)/100] × M.P.

Calculation: Let the initially marked price be Rs.100.

C.P for the shopkeeper = [(100 – 12.5)/100] × 100

⇒ C.P = Rs. 87.5

M.P of the shopkeeper = [87.5 × (100 + 40)]/100

⇒ M.P = Rs. 122.5

S.P of the shopkeeper = [(100 – 5)/100] × 122.5

⇒ S.P = Rs. 116.375

Profit% = (116.375 – 87.5)/87.5 × 100

⇒ Profit% = 33%

∴ The profit percentage is 33%.