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A roadside vendor starts the business of buying duplicate electronic goods and selling them at 5% profit. In the next year, the cost price increases by 5% and so he increases the selling price by 5% too. In the third year, the cost price decreases by 5% but he increases the selling price further by 5%. What is his profit percentage now?
  • a)
    7.5%
  • b)
    10%
  • c)
    12%
  • d)
    16%
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
A roadside vendor starts the business of buying duplicate electronic g...
Let initial C.P. be 100
Initial S.P. = 105
In the second year,
C.P. = 1.05 x 100 = 105
S.P. = 1.05 x 105 = 110.25
In the third year,
C.P. = 0.95 x 105 = 99.75
S.P. = 1.05 x 110.25* 115.76


Hence, option 4.
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Most Upvoted Answer
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.
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A roadside vendor starts the business of buying duplicate electronic goods and selling them at 5% profit. In the next year, the cost price increases by 5% and so he increases the selling price by 5% too. In the third year, the cost price decreases by 5% but he increases the selling price further by 5%. What is his profit percentage now?a)7.5%b)10%c)12%d)16%Correct answer is option 'D'. Can you explain this answer?
Question Description
A roadside vendor starts the business of buying duplicate electronic goods and selling them at 5% profit. In the next year, the cost price increases by 5% and so he increases the selling price by 5% too. In the third year, the cost price decreases by 5% but he increases the selling price further by 5%. What is his profit percentage now?a)7.5%b)10%c)12%d)16%Correct answer is option 'D'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about A roadside vendor starts the business of buying duplicate electronic goods and selling them at 5% profit. In the next year, the cost price increases by 5% and so he increases the selling price by 5% too. In the third year, the cost price decreases by 5% but he increases the selling price further by 5%. What is his profit percentage now?a)7.5%b)10%c)12%d)16%Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A roadside vendor starts the business of buying duplicate electronic goods and selling them at 5% profit. In the next year, the cost price increases by 5% and so he increases the selling price by 5% too. In the third year, the cost price decreases by 5% but he increases the selling price further by 5%. What is his profit percentage now?a)7.5%b)10%c)12%d)16%Correct answer is option 'D'. Can you explain this answer?.
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