A shopkeeper marked his goods at $40 %$ above the cost price but allows a discount of $5 %$ for cash payment to his customers What actual profit does he make, if he receives Rs.1064 after padding the discount?

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Rs.264

Rs.290

Rs.374

Rs.249

answer is B.

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Detailed Solution

Given that, goods are marked 40% above the cost price, discount percent is 5%.
Now, discount percentage is,

Discount % = Discount MP (100) ⇒ Discount = Discount % × MP 100

Here, MP is marked price.
Let the CP of the item be Rs.

x

MP = x + 40 x 100

⇒ 1.4 x

Selling price (SP) is,

SP = MP − Discount

⇒ Discount = MP − SP ⇒ MP − Discount % 100 (MP) = SP ⇒ 1.4 x − 5 (1.4 x) 100 = 1064 ⇒ x (1.4) (0.95) = 1064 ⇒ x = 1064 1.33 ⇒ x = R s .800

Now, profit is,

Profit = R s .1064 − R s .800 ⇒ R s .264

Thus, the actual profit by the shopkeeper is Rs.264.
Therefore, option (2) is correct.

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