If a shopkeeper increases the marked price by 25% and agrees to give two successive discount of 10% each. How much percent does he gain by his dishonest dealing?
1). 5%
2). 10%
3). 1.25%
4). 15%
Let the original price be x
New price of soap = x + (25/100) × x = 125x/100 = 1.25x
Price after first discount = (90/100) × (125x/100) = 1.125x
Price paid by purchaser = (90/100) × 1.125x = 1.0125x
Profit of shopkeeper = 1.0125x – x = 0.0125x
∴ Profit% = (0.0125x)/x × 100 = 1.25%