A roadside vendor starts the business of buying duplicate electronic g...
Given:
A roadside vendor buys duplicate electronic goods and sells them at a 5% profit. The cost price and selling price increase by 5% in the next year, and the cost price decreases by 5% in the third year, but the selling price increases by 5%.
Calculating the Profit Percentage:
To calculate the profit percentage, we can use the formula:
Profit Percentage = (Profit / Cost Price) * 100
Let's assume the cost price of the electronic goods in the first year is 100.
First Year:
- Cost Price = 100
- Selling Price = Cost Price + 5% Profit = 100 + (5/100) * 100 = 105
- Profit = Selling Price - Cost Price = 105 - 100 = 5
- Profit Percentage = (5 / 100) * 100 = 5%
Second Year:
- Cost Price = Cost Price + 5% Increase = 100 + (5/100) * 100 = 105
- Selling Price = Cost Price + 5% Profit = 105 + (5/100) * 105 = 110.25
- Profit = Selling Price - Cost Price = 110.25 - 105 = 5.25
- Profit Percentage = (5.25 / 105) * 100 ≈ 5%
Third Year:
- Cost Price = Cost Price - 5% Decrease = 105 - (5/100) * 105 = 99.75
- Selling Price = Selling Price + 5% Increase = 110.25 + (5/100) * 110.25 = 115.76
- Profit = Selling Price - Cost Price = 115.76 - 99.75 ≈ 16.01
- Profit Percentage = (16.01 / 99.75) * 100 ≈ 16%
Therefore, the profit percentage in the third year is approximately 16%. Hence, the correct answer is option D.