a shopkeeper buys an article at a discount of 15% on the printed price.
after charging a sales tax of 5% on the printed price, he sells the article at rs.630. find the profit
There are 3 things we must figure out in the this question.
1) What is the full price of this item + tax
2) What is the full price of this item
3) What is the price of this item with the 15% discount
4) Shopkeeper profit
For this whole problem let us assume that 'x' is equal to the full ticket price of the item:
1) rs. 630 (this is given to us in the question)
2) rs. 630 = 1.05(x)
rs. 630/1.05 = x
600 = x
Therefore the full ticket price of this item (with no tax) is rs. 600
3) price w/ 15% discount = 0.85(x)
- I got the 0.85 from 1.00-0.15 (if we're getting 15% off we are paying for 85% of the full price)
price w/ 15% discount = 0.85(600)
price w/ 15% discount = rs. 510
Therefore, the shopkeeper bought this item for rs. 510
4) Profit = Selling price - purchase price
Profit = 630-510
Profit = rs. 120
Therefore the shopkeeper made a rs. 120 profit.
To find the profit in this scenario, we need to calculate the cost price of the article and then subtract it from the selling price.
Let's start by understanding the given information:
Discount: The shopkeeper buys the article at a discount of 15% on the printed price. This means the shopkeeper pays 85% of the printed price.
Sales Tax: After buying the article at a discounted price, the shopkeeper charges a sales tax of 5% on the printed price.
Selling Price: The article is sold for Rs. 630.
Now, let's calculate the cost price (CP) of the article:
Step 1: Calculate the amount paid after the discount.
Cost Price (CP) = Printed Price - Discount
CP = 85% of Printed Price
Step 2: Calculate the amount after the sales tax.
CP + Sales Tax = Selling Price
CP + 5% of Printed Price = Rs. 630
Step 3: Solve the equation to find the Printed Price.
CP + 0.05 * Printed Price = Rs. 630
0.85 * Printed Price + 0.05 * Printed Price = Rs. 630
0.9 * Printed Price = Rs. 630
Step 4: Calculate the Printed Price.
Printed Price = Rs. 630 / 0.9
Printed Price = Rs. 700
Now that we have the Printed Price, we can find the cost price:
CP = 85% of Printed Price
CP = 0.85 * Rs. 700
CP = Rs. 595
Finally, to find the profit:
Profit = Selling Price - Cost Price
Profit = Rs. 630 - Rs. 595
Profit = Rs. 35
Therefore, the profit in this scenario is Rs. 35.