Question

A shopkeeper buys an item for Rs 2000 and marks it up by 50% to set the marked price. He then offers a 20% discount on the marked price. What is the profit earned by the shopkeeper?

• A. Rs 400
• B. Rs 500
• C. Rs 600
• D. Rs 700

Hint:

Remember: To calculate profit, find the selling price after applying the discount on the marked price, then subtract the cost price. Double-check percentage calculations.

Answer 1

The Correct Option is C

Given: \[ \text{Cost Price (CP)} = ₹2000, \quad \text{Markup} = 50\%, \quad \text{Discount} = 20\% \] Step 1: Calculate the Marked Price The marked price (MP) is set 50% above the cost price: \[ \text{MP} = \text{CP} \times (1 + 0.5) = 2000 \times 1.5 = ₹3000 \] Step 2: Calculate the Selling Price after Discount A 20% discount is applied on the marked price: \[ \text{Discount} = 20\% \, \text{of MP} = 0.20 \times 3000 = ₹600 \] \[ \text{Selling Price (SP)} = \text{MP} - \text{Discount} = 3000 - 600 = ₹2400 \] Step 3: Calculate the Profit Profit is the difference between the selling price and the cost price: \[ \text{Profit} = \text{SP} - \text{CP} = 2400 - 2000 = ₹600 \] Answer: The correct answer is option (3): ₹600.