Question 69

A merchant makesa profit of 20% by selling an article. What would be the approx. percentage change in the profit per cent had he paid 16% less for it and the customer paid 10% more for it?

Solution

Price at which merchant purchased = 100x

Price at which merchant sold = 120% of 100x = 120x

New price at which merchant purchased = 90% of 100x = 90x

New price at which merchant sold = 110% of 120x = 132x

New profit percent = $$\frac{132 - 90}{90} * 100 = 46.67$$%

Difference between profit percents = 46.67 - 20 = 26.67%

Required percent = $$\frac{26.67}{20} * 100 = 133.33$$%

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