A dishonest dealer claimed he sells rice at a loss of 5%, but he used faulty weights and weighs 20% less rice. Calculate his overall loss or gain%.

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AFCAT 03 Oct 2020 Shift 2 Memory Based Paper
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  1. 17.5%
  2. 19%
  3. 18.75%
  4. 20%

Answer (Detailed Solution Below)

Option 3 : 18.75%
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Detailed Solution

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Concept used:

Profit % = {(Selling Price – Cost Price)/Cost Price} × 100

Solutions:

Suppose the salesman sells 1 kg of rice and cost of 1 kg rice is Rs. 100

Dealer claimed he sold the rice at 5% loss

Selling Price of the rice = 100 × (95/100) = Rs. 95

Dealer uses a faulty weight and weighs 20% less

Cost price of the rice = 100 × (80/100) = Rs. 80

Profit % = {(Selling Price – Cost Price)/Cost Price} × 100

⇒ Profit % = {(95 – 80)/80} × 100

⇒ Profit % = (15/80) × 100 = 75/4 = 18.75%

∴ Profit earned by dealer is 18.75%
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