A shopkeeper sold an article offering a discount of 5% and earned a profit of 23.5%. What would have been the percentage of profit earned if no discount was offered?A 24.5% B 28.5% C 30% D 23.5%
Question
A shopkeeper sold an article offering a discount of 5% and earned a profit of 23.5%. What would have been the percentage of profit earned if no discount was offered?A 24.5% B 28.5% C 30% D 23.5%
Solution
To solve this problem, we need to understand the relationship between cost price, selling price, discount, and profit.
Let's assume the marked price (the price before discount) of the article is $100.
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The shopkeeper offers a discount of 5%, so the selling price becomes $95 (100 - 5% of 100).
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The shopkeeper still makes a profit of 23.5%. This means that the cost price of the article is less than 95 / (1 + 23.5/100) = $76.92 approximately.
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If no discount was offered, the selling price would be the marked price, which is $100.
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The profit percentage is calculated as (Selling price - Cost price) / Cost price * 100. So, if no discount was offered, the profit percentage would be (76.92) / $76.92 * 100 = 30% approximately.
So, the answer is C, 30%.
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