Multiple Choice Questions on A shopkeeper buys an item for Rs 500 and sells it at 20 profit but one customer buys it from him at ........... for IBPS RRB - Officers Exam Preparation

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Multiple Choice Questions

A shopkeeper buys an item for Rs 500 and sells it at 20 profit but one customer buys it from him at ...........

Quantitative Aptitude(IBPS RRB PO) Profit and loss
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    A shopkeeper buys an item for Rs. 500 and sells it at 20% profit but one customer buys it from him at the selling price for 4 years at a simple rate of interest, which is 5% per annum. How much profit percentage is earned by a shopkeeper if interest is also considered as profit? 

    This questions was previously asked in
    RRB PO Prelims (06 Aug, 2023 Shift 1)
    View All RRBA Previous Year Papers

    40%

    Incorrect Answer

    48%

    Incorrect Answer

    44% 

    Correct Answer

    46% 

    Incorrect Answer

    None of these

    Incorrect Answer
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    Explanation:

    - The shopkeeper originally buys the item for Rs. 500.

    - He sells it with a 20% profit:

    - Selling price = Rs. 500 + 20% of Rs. 500 = Rs. 500 + Rs. 100 = Rs. 600.

    - The item is purchased on credit for 4 years with a 5% per annum simple interest rate:

    - Total interest for 4 years = Rs. 600 * 5% * 4 = Rs. 120.

    - Total money received by the shopkeeper = Rs. 600 + Rs. 120 = Rs. 720.

    - Total profit = Rs. 720 - Rs. 500 = Rs. 220.

    - Profit percentage = (Profit/Cost Price) * 100 = (220/500) * 100 = 44%.

    Correct Answer: Option 3 - 44%

    By: Parvesh Mehta
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