Question

A greedy businessman cheats both the seller and buyer by 20%. His real profit is:
A) 43%
B) 45%
C) 44%
D) 40%

Answer 1

Hint: Businessmen bought the product for 20% less from the cost price and sold it for 20% more than the cost price. Divide profit by cost price and multiply this result by 100 to find the profit percentage.

Complete step-by-step answer:
To solve this question, we have to suppose the cost of the product. So, let’s suppose that the cost of the product is 100 Rs.
The businessman cheats the seller and buyer by 20% so, first we have to find 20% of the cost price, for this we will multiply 100 by 20% as,
\[\begin{gathered}
  100 \times 20\% = 100 \times \dfrac{{20}}{{100}} \\
   = 20 \\
\end{gathered} \]
As, 20% of the cost price is 20. This means that a businessman bought the product for 20 Rs less than the cost price and sold it for 20 Rs more than the cost price.
So, we will subtract 20 from cost price to find the amount in which the product is bought, \[100 - 20 = 80\]
Now, we will add 20 to cost price to find the amount in which the product is sold, \[100 + 20 = 120\]
The businessman bought the product for Rs 80 and sold it for Rs 120.
Now we will find the profit and for this we will subtract 120 from 80, we get,
\[120 - 80 = 40\]
Now our task is to find the profit percentage and for this we will divide 40 by the cost price and will multiply the result by 100,
\[\dfrac{{40}}{{100}} \times 100\% = 40\% \]
Thus, the real profit of the businessman is 40%.
Therefore, option D is correct.

Note: Real profit is found on actual cost price and actual selling price. Here the cost price was 100 but the salesman bought the product for Rs 80 as he cheated the seller.