A dealer buys an article marked at Rs. 20000 with two successive discounts of 20% and 5%. He spends Rs. 1000 for its repair and sells it for Rs. 20000. What is his profit/loss percent (correct to two decimal places)?
Show answer & explanation
Correct answer: D
Explanation
Correct Answer is option 4 i.e. 23.45% profit
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Concept |
Understanding |
Application |
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Cumulative discount after 2 successive discounts of x and y% = x + y - xy/100 |
Two successive discounts of 20% and 5%.
Cumulative discount = 20 + 5 – 100/100 = 24% |
CP = 20000 × 0.76 + 1000 = 15200 + 1000 = 16200 SP = 20000 Profit percentage = (20000 – 16200)/16200 × 100 = 3800/162 = 23.45% |