The marked price of an item is 50% more than its cost price. The shopkeeper offers two successive discounts of 10% and 15%. What is his profit percentage?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e 14.75%.
Marked Price (MP) = 50% more than Cost Price (CP)
So, MP = 1.5 × CP
Two successive discounts: 10% and 15%
MP after first discount = MP × 90% = 1.5 × CP × 0.9 = 1.35 × CP
Second discount = 1.35 × CP × 85% = 1.35 × CP × 0.85 = 1.1475 × CP
So, SP = 1.1475 × CP
Profit = SP - CP = 1.1475 × CP - CP = 0.1475 × CP
Profit % = (Profit / CP) × 100 = 0.1475 × 100 = 14.75%