Question

Juman is a small shopkeeper in a small village. He uses 900 gm in place of one kg. He sells at 8% profit. What will be the overall profit or loss percentage?
1. 60% profit
2. 40% loss
3. 20% profit
4. 10% loss

Answer 1

Correct Answer - Option 3 : 20% profit

Given∶

He sells at the product at 8% profit.

He also uses 900 gm in place of one kg.

Formula Used∶

Overall profit% or Loss% = [100 + profit%] × (original weight/altered weight) – 100

Calculation∶

Profit% = 8%

Original weight = one kg = 1000 gm

Altered weight = 900 gm

After using the formula,

Required profit or loss percentage = [100 + 8] × [1000/900] – 100 = [(108 × 1000)/900] – 100

= 120 – 100 = 20%

Positive sign indicates profit.

∴ the profit% is 20%.