Question

By selling an article at \(\frac{7}{12}\) of its selling price, a man loses 16%. If he sells it at 90% of its original selling price, then what will be the profit percentage?
1. 29.6%
2. 26.4%
3. 32.5%
4. 30.2%

Answer 1

Correct Answer - Option 1 : 29.6%

Given:

Selling an article at 7/12 of its selling price 

Loss = 16%

He sells at original price = 90%

Formula used:

Profit = SP – CP

Profit% = (Profit/CP × 100)

Calculation:

According to the question

⇒ SP/12 = New SP/7

⇒ 16% = (16/100) = 4/25

Now,

Cost price of an article = 25

New selling price of an article = 21

⇒ 7New SP= 21

⇒New SP = 3

The selling price of an article = (3 × 12) = 36

Now,

⇒ (90% of 36)

⇒ (90/100 × 36)

⇒ 32.4

Profit = (32.4 – 25) = 7.4

Profit% = (7.4/25 × 100)

⇒ 29.6%

∴ The loss percentage is 29.6