Question

A shopkeeper marked his goods at 40% above the cost price but allows a discount of 5% for cash payment to his customers. What actual profit does he make, if he receive Rs. 1064 after paying the discount?

Answer 1

Given,

Shopkeeper marks his goods at 40% above the cost price.

Let the cost price be ‘x’

Marked price is 140x/100 (40 more than 100 if CP is 100)

Discount on marked price is 5%

Discount = (MP × Discount %)/100

= (140x/100×5)/100

= (7x/100)

SP = MP – Discount

= 140x/100 – 7x/100

= (140x-7x)/100

= Rs 133x/100

Given SP = Rs 1064

Equating both the SP we get,

1064 = 133x/100

133x = 1064×100

x = (1064×100)/133

= 800

Now, the cost price = Rs 800

SP = Rs 1064

Profit = SP – CP

= 1064 – 800

= 264

∴ The actual profit is Rs 264.