Question

Two merchants sell an article for Rs. 2,000 each. Merchant P computes his profit on cost price while Merchant Q computes his profit on selling price. Both make a profit of 25% each. By how many rupees is the actual profit made by Q more than that made by P?
1. 60
2. 150
3. 100
4. 50
5. 120

Answer 1

Correct Answer - Option 3 : 100

Calculation:

Since Q computes actual profit on S.P., actual profit for Q

⇒ 25% of 2000

⇒ Rs. 500 

Since P computes actual profit on C.P., C.P. for P = 2000/1.25

Rs. 1600 

∴ Actual profit for A = 25% of 1600

⇒ Rs. 400

∴ Required difference

⇒ 500 − 400

⇒ Rs. 100 

The actual profit made by Q more than that made by P is of Rs. 100.