A shopkeepers made a profit of 16% on his goods.If the price at which he buys decreases by 20% while he reduces his selling price by 23%, what is now his percentage of profit? (correct to one decimal place)
Let his cost price = Rs. $$100x$$
Selling price to get 16% profit = $$\frac{116}{100}\times100x=Rs.$$ $$116x$$
Now, new cost price =Â $$\frac{80}{100}\times100x=Rs.$$ $$80x$$
New selling price =Â $$\frac{77}{100}\times116x=Rs.$$ $$89.32x$$
$$\therefore$$ New Profit % = $$\frac{89.32x-80x}{80x}\times100$$
= $$\frac{9.32}{4}\times5=11.6\%$$
=> Ans - (A)
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