Question

A dealer buys an article marked at Rs.25000 with 20% and 5% off. He spends Rs.1000 on its repairs and sells it for Rs.25000. What is his gain percentage?
a. 25%
b. 30%
c. 35%
d. 40%

Answer 1

Hint: In this given question we should first calculate a discount of 20% on Rs. 25000 and then another discount of 5% on the result we get from the first calculation in order to solve this question. Then we may add 1000 to it and term it as the Cost Price (CP) and subtract it from the Selling Price (SP) to get the profit then multiply it by 100 and divide by the cost price to get our required answer as the gain/profit percentage (%).

Complete step-by-step answer:

It is given that the dealer buys an article marked Rs. 25000 with 20% and 5% off.
Now, Rs. 25000 with a discount of 20% is $25000-\dfrac{20}{100}\times 25000=20000$.
Now, Rs. 20000 with a discount of 5% is $20000-\dfrac{5}{100}\times 20000=19000$.
Then, he had to spend Rs. 1000 for its repairs and amends. So, we get the cost price (CP) of the article to be Rs. 19000+1000= Rs. 20000.
He sells the article at a price of Rs.25000.
So, its selling price (SP) is Rs. 25000.
In order to obtain the profit percentage, we need to have the profit price made by the dealer. Now, we know that
Profit= Selling Price – Cost Price..........(1.1)
So, using equation 1.1 here, we get
Profit= $25000-20000=5000$........(1.2)
Now, the gain/profit percentage = $\dfrac{profit}{CP}\times 100$……………..(1.3)
Putting the value of gain from equation 1.2, we get
$\dfrac{5000}{20000}\times 100=25%$

Therefore, we obtain our answer as 25%, that is option (a).

Note: In this given question we must understand that the dealer is getting a discount of 5% on the price which is already at a discount of 25% on Rs. 25000 and calculate as needed carefully.