Single correct option
A dishonest trader claims to sell rice at cost price, but uses a weight of 800 g in place of 1 kg. He also offers a 5% discount on the cost price to every customer. What is his actual profit percentage?
- A. 18.75%
- B. 20%
- C. 12.5%
- D. 15%
Show answer and solution
Answer: (A) 18.75%
Take the cost price of 1 kg as ₹100.
The customer pays 95% of 100 = ₹95 and receives only 800 g, which costs the trader ₹80.
Profit % = (95 − 80)/80 × 100 = 18.75%.
Why not 20%? Only the false weight gives 25% (100/80); the discount then reduces the revenue: 0.95 × 1.25 = 1.1875.
Tip: Profit factor = (price factor) × (true weight / false weight).
The customer pays 95% of 100 = ₹95 and receives only 800 g, which costs the trader ₹80.
Profit % = (95 − 80)/80 × 100 = 18.75%.
Why not 20%? Only the false weight gives 25% (100/80); the discount then reduces the revenue: 0.95 × 1.25 = 1.1875.
Tip: Profit factor = (price factor) × (true weight / false weight).
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