A shopkeeper marks his jackets at 18.8% above the cost price and allows the purchaser a discount of 12.5% for online payment. What profit percentage does the shopkeeper make (correct to two places of decimals)?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 3.95% .
Let cost price = ₹100
Marked price = 100 + 18.8% of 100 = 118.8
Discount = 12.5% of 118.8 = 14.85
Selling price = 118.8 − 14.85 = 103.95
Profit = 103.95 − 100 = 3.95
Profit % = (3.95 ÷ 100) × 100 = 3.95%