QB_PH_GA_012: Quantitative Aptitude

A shopkeeper marks an article at 40% above its cost price and offers a discount of 25% on the marked price. What is the net profit percentage earned by the shopkeeper?

Correct Answer

### Step-by-Step Derivation & Verification: 1. **Base Value Assignment**: Assume cost price $\text{CP} = 100$. 2. **Markup Computation**: $\text{MP} = \text{CP} \times (1 + 0.40) = 100 \times 1.40 = 140$ 3. **Discount Computation**: $\text{SP} = \text{MP} \times (1 - 0.25) = 140 \times 0.75 = 105$ 4. **Profit Percentage**: $\text{Profit}\% = \frac{\text{SP} - \text{CP}}{\text{CP}} \times 100 = \frac{105 - 100}{100} \times 100 = 5\%$ 5. **Official Answer**: 5.