A shopkeeper allows 16% discount on every item. Even after giving the discount, he makes a profit of 8%. If he gives 8% discount instead of 16% on an item marked for Rs 1800 , then what will be his profit percent? ( correct to 2 decimal places).
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 18.29
Given :
Discount % = 16%
Marked price = Rs 1800
Formula used :
Selling price = Marked price × (100 - Discount%)/100 ----- (1)
Profit percent = (SP - CP)/CP × 100 ----- (2)
Calculations :
Using equation (1), we get
Selling price after 16% discount = 1800 × (84/100)
⇒ Rs 1512
Using equation (2)
⇒ 8 = (1512 - CP)/CP × 100
⇒ CP = Rs 1400
Selling price when 8% discount was given = 1800 × (92/100)
⇒ Rs 1656
Profit percent = (1656 - 1400)/1400 × 100
⇒ 256/14 = 18.29 %