A trader marked the price of a commodity to include a profit of 25% but allowed a discount of 16% on the marked price. What will be his actual profit ?

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  1. 5%
  2. 9%
  3. 16%
  4. 25%

Answer (Detailed Solution Below)

Option 1 : 5%
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सामान्य हिंदी सेक्शनल टेस्ट 1
37 Qs. 74 Marks 20 Mins

Detailed Solution

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Given:

Marked Price (MP) = Cost Price (CP) + 25% of CP

Discount = 16% of MP

Formula used:

MP = CP × (1 + 0.25)

Selling Price (SP) = MP × (1 - 0.16)

Profit Percentage = 

Calculation:

MP = CP × (1 + 0.25)

⇒ MP = CP × 1.25

SP = MP × (1 - 0.16)

⇒ SP = CP × 1.25 × 0.84

⇒ SP = CP × 1.05

Profit Percentage = 

⇒ Profit Percentage = 

⇒ Profit Percentage = 

⇒ Profit Percentage = 0.05 × 100

⇒ Profit Percentage = 5%

∴ The correct answer is option 1.

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