A shopkeeper gives 20% commission on the retail price of one article and earns 5% profit. If his commission is reduced by 10%, then what is his approximate profit percentage? (Nearest integral value)
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 18%
Given that
A shopkeeper gives 20% commission on the retail price of one article and earns 5% profit.
SP = 80x
CP = 80x * (100/105) = 1600x/21 = 76.19x
Now, his commission is reduced by 10%
New SP = 90x
Profit % = [(SP - CP)/CP] *100 = [(90x - 76.19x)/76.19x] * 100 = 18%