CAT Practice : Percents, Profits

If merchant A makes x % profit and merchant B makes y %, then what is the color of the shirt? - that kind of question.

Profit merchants

    Q.10: Traders A and B buy two goods for Rs. 1000 and Rs. 2000 respectively. Trader A marks his goods up by x%, while trader B marks his goods up by 2x% and offers a discount of x%. If both make the same non-zero profit, find x.
    1. 25%
    2. 12.5%
    3. 37.5%
    4. 40%

 

  • Correct Answer
    Choice A. 25%

Explanatory Answer

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Detailed Solution

SP of trader A = 1000 (1 + x).
Profit of trader A = 1000 (1 + x) – 1000.
MP of trader B = 2000 (1 + 2x).
SP of trader B = 2000 (1 + 2x) (1 – x).

Profit of trader B = 2000(1 + 2x) (1 – x) – 2000.
Both make the same profit => 1000(1 + x) – 1000 = 2000(1 + 2x) (1 – x) – 2000
1000x = 2000 – 4000x2 + 4000x – 2000x – 2000
4000x2 -1000x = 0
1000x (4x – 1) = 0
=> x = 25%. Answer choice (A)

Correct Answer: 25%



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