Question

A shopkeeper sells a product at some loss. If he reduces the selling price of the product by 5 percent, his loss increases by 4 percent. At what loss percent he sells his product? (Note: Options are rounded off)
1. 63.63 percent
2. 35 percent
3. 55.55 percent
4. 40 percent

Answer 1

Correct Answer - Option 3 : 55.55 percent

Concept:

Loss = Cost price - Selling price

Calculation:

Let be assume cost price of product is C and selling price of product is S and loss is L

⇒ L = C - S

⇒ 1.04L = C - 0.95S

⇒ 1.04L = C - 0.95 × (C - L)

⇒ 0.09L = 0.05C

⇒ L = (0.05/0.09) × C = (0.5555) × C

⇒ L% = 55.55%

∴ The required result will be 55.55%