Question

A shopkeeper earned a profit (in Rs.) by selling an item, which is three times the discount offered (in Rs.). If the discount offered is 6.25%, what is his profit percentage?

• A. 20%
• B. 25%
• C. 10%
• D. 12%

Answer 1

The Correct Option is B

To find the profit percentage, we start by defining some variables: Let the marked price (MP) of the item be Rs. 100, since percentages are easier to calculate in terms of 100. The discount offered is 6.25%, so the discount amount will be 6.25% of 100, which is Rs. 6.25.

The shopkeeper's profit is three times the discount amount. So, the profit is: $$3 \times 6.25 = 18.75 \text{ Rs.}$$

Now, the cost price (CP) is the selling price (SP) minus the profit. The selling price is the marked price minus the discount = Rs. 100 - Rs. 6.25 = Rs. 93.75. Therefore, $$\text{CP} = \text{SP} - \text{profit} = 93.75 - 18.75 = 75 \text{ Rs.}$$

The profit percentage is calculated as follows: $$\text{Profit Percentage} = \left(\frac{\text{Profit}}{\text{CP}}\right) \times 100 = \left(\frac{18.75}{75}\right) \times 100 = 25\%$$