Question

Otieno bought a shirt and paid sh 320 after getting a discount of 10%. the shopkeeper made a profit of 20% on the sale. find the percentage profit the shopkeeper would have made if no discount was allowed?

Answer 1

To find the profit percentage the shopkeeper would have made if no discount was allowed, we first need to calculate the cost price of the shirt. The cost price is calculated by subtracting the discount amount from the original price. Then, we can calculate the profit percentage by dividing the profit by the cost price and multiplying by 100.

Step-by-step explanation:

To find the profit percentage the shopkeeper would have made if no discount was allowed, we need to first calculate the cost price of the shirt.

Since Otieno paid Ksh 320 after getting a discount of 10%, the discounted price can be calculated as follows:

Discounted price = Original price - (Discount percentage * Original price)
320 = Original price - (0.1 * Original price)
320 = 0.9 * Original price
Original price = 320 / 0.9 = Ksh 355.56 (rounded to the nearest cent)

Now, let's calculate the profit percentage if no discount was allowed:

Profit percentage = (Profit / Cost price) * 100
Since the shopkeeper made a profit of 20%, the profit can be calculated as follows:

Profit = 0.2 * Cost price
Profit = 0.2 * 355.56 = Ksh 71.11 (rounded to the nearest cent)

Therefore, the profit percentage the shopkeeper would have made if no discount was allowed is:

Profit percentage = (71.11 / 355.56) * 100 = 20%