A customer saves Rs.320 at the rebate of 20% on market price of an article. If the cost price of the article for shopkeeper is Rs.1000, then the profit percent of shopkeeper is:
Explanation:
- The market price of the article is reduced by a 20% rebate, leading to a savings of Rs. 320 for the customer.
- Let the market price be Rs. X. Then, 20% of X equals Rs. 320.
- Therefore, X = Rs. 1600 (since 20% of 1600 = 320).
- After the rebate, the selling price becomes Rs. 1600 - Rs. 320 = Rs. 1280.
- The shopkeeper bought the article for Rs. 1000 (cost price).
- The profit is calculated as Selling Price - Cost Price = Rs. 1280 - Rs. 1000 = Rs. 280.
- Profit percent is (Profit/Cost Price) x 100 = (280/1000) x 100 = 28%.
Option 2: 28% is the correct answer.
![]()
By: Parvesh Mehta