Shopkeeper sells his goods at 20% above the cost price. What will be the percentage profit he will earn if he discounts the price by 10% and then offer a seasonal discount of 5%?
To find out the percentage profit the shopkeeper will earn, we need to calculate the final selling price after applying both discounts.
Let's assume the cost price of the goods is $100.
First, the shopkeeper sells the goods at a 20% markup, so the selling price is:
Selling Price = Cost Price + 20% of Cost Price
Selling Price = $100 + (20/100) * $100
Selling Price = $100 + $20
Selling Price = $120
Next, the shopkeeper offers a discount of 10%, so the selling price after applying the discount is:
Discounted Price = Selling Price - 10% of Selling Price
Discounted Price = $120 - (10/100) * $120
Discounted Price = $120 - $12
Discounted Price = $108
Finally, the shopkeeper offers a seasonal discount of 5%, so the final selling price after applying the seasonal discount is:
Final Selling Price = Discounted Price - 5% of Discounted Price
Final Selling Price = $108 - (5/100) * $108
Final Selling Price = $108 - $5.40
Final Selling Price = $102.60
To calculate the percentage profit, we subtract the cost price from the final selling price and express it as a percentage of the cost price:
Profit = Final Selling Price - Cost Price
Profit = $102.60 - $100
Profit = $2.60
Percentage Profit = (Profit / Cost Price) * 100
Percentage Profit = ($2.60 / $100) * 100
Percentage Profit = 2.6%
Therefore, the shopkeeper will earn a 2.6% profit after applying both discounts.
To find the percentage profit, we need to calculate the final selling price after applying the given discounts.
Let's assume the cost price of an item is $100.
The shopkeeper sells the goods at a 20% markup, so the selling price before any discounts is:
Original Selling Price = Cost Price + (20% of Cost Price)
= $100 + (20/100) * $100
= $100 + $20
= $120
Now, the shopkeeper offers a discount of 10%. The selling price after applying this discount will be:
Price after 10% discount = Original Selling Price - (10% of Original Selling Price)
= $120 - (10/100) * $120
= $120 - $12
= $108
After the first discount, the shopkeeper offers a seasonal discount of 5%. The final selling price after the seasonal discount will be:
Final Selling Price = Price after 10% discount - (5% of Price after 10% discount)
= $108 - (5/100) * $108
= $108 - $5.4
= $102.6
To calculate the percentage profit, we need to find the difference between the final selling price and the cost price, and then calculate it as a percentage of the cost price.
Profit = Final Selling Price - Cost Price
= $102.6 - $100
= $2.6
Percentage Profit = (Profit / Cost Price) * 100
= ($2.6 / $100) * 100
= 2.6%
Therefore, the shopkeeper will earn a 2.6% profit after applying the discounts.
1.20 * 0.90 * 0.95 = 1.026
so he gets 2.6% profit