Join 60,000+ competitive exam aspirants
or with email
Your Cart
Subtotal₹0
Total₹0
Examoogle • User • info@examoogle.com • EE-2024-8821
Chapter 1 of 12 • Page 1 of 248🔒 Protected PDF • Watermarked
Join 60,000+ competitive exam aspirants
A shopkeeper marks a mobile phone 40% above its cost price. He then offers two successive discounts of 10% and 5% on the marked price. Find the profit percentage he makes on the cost price.
23%
22.3%
19.7%
21%
23%
Assume CP=100. Then MP=140. SP=140×0.90×0.95=140×0.855=119.7. Profit is 119.7−100=19.7%.
Marked price is 40% above Cost Price (CP). Two successive discounts of 10% and 5% are applied on the Marked Price (MP).
Profit%=(CPSP−CP)×100
Assume CP=100. Then MP=140. SP=140×0.90×0.95=140×0.855=119.7. Profit is 119.7−100=19.7%.
Adding the percentages (10%+5%=15%) or subtracting the discount directly from the marked price percentage (40%−15%=25%) is incorrect because discounts are multiplicative.
Define Cost and Marked Price
Assume the cost price (CP) of the mobile phone is 100. Since the shopkeeper marks it 40% above cost price, the marked price (MP) becomes 100+40=140.
CP=100,MP=140
Calculate Selling Price after Successive Discounts
Apply the first discount of 10% and the second discount of 5% on the marked price. The final selling price (SP) is 140×(1−0.10)×(1−0.05)=140×0.90×0.95.
SP=140×0.9×0.95=119.7
Calculate Profit Percentage
The profit is the difference between the selling price and the cost price. Profit = 119.7−100=19.7. Since CP is 100, the profit percentage is 19.7%.
Profit%=100119.7−100×100=19.7%
C is correct because the final selling price is 119.7 relative to a cost price of 100, resulting in a profit of 19.7%.
Successive discounts can be calculated using the effective discount formula Deff=d1+d2−100d1×d2, here 10+5−0.5=14.5%. Then apply this reduction to the marked price.