Question

A shopkeeper bought an item for ₹7825 and marked it at 30% higher than the cost price. If he sells the item by allowing 20% discount, then his profit percentage will be:

• A. 3%
• B. 4%
• C. 5%
• D. 6%

Hint:

Profit percentage can be found by calculating the profit and dividing it by the cost price, then multiplying by 100.

Answer 1

The Correct Option is B

Step 1: Marked Price of the Item.
The shopkeeper marks the item at 30% higher than the cost price. The marked price \( M \) is: \[ M = 7825 \times \left( 1 + \frac{30}{100} \right) = 7825 \times 1.3 = 10172.5 \]

Step 2: Selling Price After Discount.
The shopkeeper sells the item by allowing a 20% discount on the marked price. The selling price \( S \) is: \[ S = 10172.5 \times \left( 1 - \frac{20}{100} \right) = 10172.5 \times 0.8 = 8138 \]

Step 3: Profit and Profit Percentage.
The profit is: \[ \text{Profit} = S - \text{Cost Price} = 8138 - 7825 = 313 \] The profit percentage is: \[ \text{Profit Percentage} = \frac{\text{Profit}}{\text{Cost Price}} \times 100 = \frac{313}{7825} \times 100 \approx 4% \]

Final Answer: \[ \boxed{4%} \]