Question

An article costing Rs 4000 is sold at a certain profit. If customer purchased it for Rs 5424 with 13% Vat.Find the profit %​

Answer 1

20%

Explanation:

The selling price before VAT is added was ...

(Rs 5424)/(1 +13%) = Rs (5424/1.13) = Rs 4800

The profit is the difference between this price and the cost:

profit = Rs 4800 -4000 = Rs 800

So, the profit percentage is ...

profit / cost × 100% = (800/4000)×100% = 20%

The seller made a profit of 20% on the article.