Question

A shopkeeper marks a television set for

GH¢360 so as to make a profit of 20%
allowed a discount of 5 % off the marked
price. Calculate the actual percentage
5. Calculate the percentage discount on an
article
the cost price. When he sells it, he
on
profit.
article whose price was reduced from
GH¢6 to GH¢4.50.​

Answer 1

To calculate the actual percentage profit made by the shopkeeper, one must find the cost price, sale price after the discount, and then determine the actual profit and its percentage. For the second part, the percentage discount is found by the change in price divided by the original price, then multiplied by 100%.

Step-by-step explanation:

The question involves calculating the actual percentage profit a shopkeeper makes after allowing a discount on an item. The television set is marked up by 20% for profit, but a discount of 5% is then applied to the marked price. To calculate the percentage discount on an article, you first need the original and discounted prices. The formula for the percentage change, which is applicable here, is (Change in quantity / Original quantity) × 100%.

Step-by-Step Calculation of Discount and Profit:

1. Determine the amount of discount: GH¢(360 × 0.05) = GH¢ 18.
2. Calculate the sale price after discount: GH¢(360 - 18) = GH¢ 342.
3. Find the cost price given the marked price and profit margin: (100% / 120%) × GH¢ 360 = GH¢ 300.
4. Calculate the actual profit made: GH¢ 342 - GH¢ 300 = GH¢ 42.
5. Compute the actual percentage profit: (GH¢ 42 / GH¢ 300) × 100% = 14%.

For the second scenario, the percentage discount on an article reduced from GH¢ 6 to GH¢ 4.50 is calculated as follows:

1. Calculate the amount of discount: GH¢(6 - 4.50) = GH¢ 1.50.
2. Compute the percentage discount: (GH¢ 1.50 / GH¢ 6) × 100% = 25%.