With a 20% discount on a selling price the shopkeeper makes a profit of 25%.If an item cost is Tsh8000. Find the selling price.
I failed to calculate
let the selling price be s
.8s = 1.25(8000)
solve for s
To find the selling price, we need to first determine the shopkeeper's cost price, as the selling price is calculated from it. Let's call the cost price "C".
We know that the profit made by the shopkeeper is 25% of the selling price. This means that the shopkeeper sells the item for the cost price plus 25% of the selling price, which is 1.25 times the cost price.
Therefore, the selling price is given by:
Selling Price = Cost Price + Profit
Selling Price = C + 0.25C
Selling Price = 1.25C
Now, according to the problem, there is a 20% discount on the selling price. This means that the selling price is reduced by 20%.
To apply the discount, we calculate 80% of the selling price:
Discounted Price = 0.8 * Selling Price
Since Selling Price = 1.25C, we can substitute it in the equation above:
Discounted Price = 0.8 * 1.25C
Now, the problem states that the cost price is Tsh8000, so we substitute this value for C:
Discounted Price = 0.8 * 1.25 * 8000
Finally, we can calculate the discounted selling price:
Discounted Price = 8000 * 1.25 * 0.8
Evaluating the multiplication and obtaining the result to find the discounted price:
Discounted Price = 8000 * 1.25 * 0.8 = 8000 * 1 = 8000
Therefore, the selling price after the 20% discount is Tsh8000.