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A shopkeeper sells a table at a discount of 20% and earns a profit of 60%. If he sells the same table at 40% discount, then what will be his new profit percent?
  • a)
    20
  • b)
    30
  • c)
    35
  • d)
    40
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
A shopkeeper sells a table at a discount of 20% and earns a profit of ...
Let the Cost price of the table be a
Since he gains a profit of 60%, the selling price = a + (60/100) x a = 1.6a
Let the Marked price of the table be b
⇒ b – (20/100) x b = 1.6a
⇒ b = 2a
Now, if he sells the table at 40% discount
⇒ New selling price will be = 2a – (2a) x (40/100)
⇒ New selling price = 1.2a
∴ New profit percent = [(1.2a – a)/a] x 100 = 20%
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A shopkeeper sells a table at a discount of 20% and earns a profit of 60%. If he sells the same table at 40% discount, then what will be his new profit percent?a)20b)30c)35d)40Correct answer is option 'A'. Can you explain this answer?
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