A grocer sells rice at 10% profit and uses weights which are 20% less than the market weight. The total gain earned by him is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. 37.5%.
Let the CP of rice be x then,
S.P. = x(1 + 10%)
⇒ S.P. = x(1 + 0.10)
⇒ S.P. = 1.1x
Faulty weights are 20% less than market ones than so,
Actual weight of 1 kg weight = 1000 - 200 = 800gm
Now SP of 800 gm of rice is 1.1x then
SP of 1 gm of rice = 1.1x/800
SP of 1000 gm rice = 1100x/800 = 1.375x
Now,
Profit% = [(1.375x - x)/x] × 100
⇒ Profit% = [0.375x/x] × 100
⇒ Profit% = 0.375 × 100 = 37.5%
Thus,
The total gain earned by him is 37.5%