Question

A shopkeeper claims to sell rice at cost price. He uses a false weight with the intention of selling rice at 25% profit. After selling Rice to a customer, he realizes that the customer has paid 10% less than what he should have paid. What is the actual profit percentage made by the shopkeeper?

A.
6.25%
B.
10%
C.
12.5%
D.
15%

Accepted Answer

C. To make 25% profit, cost of quantity given is 800 for nominal 1000 price. Customer pays 10% less than 1000, so customer pays 900. Actual CP = 800, Actual SP = 900. Actual profit % = $\frac{900 - 800}{800} 	imes 100 = 12.5\%$.

False Weight Profit Percentage

Explanation

Practise this under exam conditions