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A seller marts his goods 60% above their cost price but allows 20% discount for cash payment. His percentage of profit when sold in cash is*1) 10.52) 283) 194) 8.5

Question

A seller marts his goods 60% above their cost price but allows 20% discount for cash payment. His percentage of profit when sold in cash is*1) 10.52) 283) 194) 8.5

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Solution

Let's solve this step by step:

  1. Let's assume the cost price of the goods is $100.

  2. The seller marks his goods 60% above the cost price. So, the marked price becomes 100+60100 + 60% of 100 = $160.

  3. Now, the seller allows a 20% discount for cash payment. So, the selling price becomes 16020160 - 20% of 160 = $128.

  4. The profit made by the seller when sold in cash is the selling price minus the cost price, which is 128128 - 100 = $28.

  5. To find the percentage of profit, we divide the profit by the cost price and multiply by 100. So, the percentage of profit is (28/28/100) * 100 = 28%.

So, the correct answer is 2) 28.

This problem has been solved

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