Question
Mon April 06, 2015 By: Astha Agrawal

A retailer buys an article at a discount of 10% on the list price from the wholesaler. The retailer marks up the list price by 15%. A customer pays Rs.483 to get it paying a sales tax at rate of 5% on the price asked for. Find the profit of the retailer.

Expert Reply
Vimala Ramamurthy
Tue April 07, 2015
L e t space t h e space l i s t space p r i c e space b e space x T h e space r e t a i l e r space m a r k s space u p space t h e space l i s t space p r i c e space b y space 15 %. T h u s space t h e space m a r k e d space p r i c e space equals 15 over 100 x T h u s comma space s a l e s space p r i c e equals x plus 15 over 100 x C u s t o m e r space i s space p a y i n g space 5 % space s a l e s space t a x space o n space t h e space s a l e s space p r i c e. T h u s comma space c u s t o m e r space i s space p a y i n g space x plus 15 over 100 x plus 5 over 100 cross times open parentheses x plus 15 over 100 x close parentheses G i v e n space t h a t space c u s t o m e r space p a y i n g space p r i c e equals R s.483 rightwards double arrow x plus 15 over 100 x plus 5 over 100 cross times open parentheses x plus 15 over 100 x close parentheses equals 483 rightwards double arrow x plus 0.15 x plus 0.05 x plus 0.0075 x equals 483 rightwards double arrow 1.2075 x equals 483 rightwards double arrow x equals fraction numerator 483 over denominator 1.2075 end fraction rightwards double arrow x equals R s.400 R e t a i l e r apostrophe s space cos t space p r i c e equals 90 over 100 x equals R s.360 R e t a i l e r s apostrophe s space s e l l i n g space p r i c e equals x plus 15 over 100 x equals R s.460 S i n c e space S. P greater than C. P comma space r e t a i l e r space m a d e space a space p r o f i t. P r o f i t equals 460 minus 360 equals R s.100
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