A shopkeeper marks his jackets at 18.8% above the cost price and allows the purchaser a discount of 12.5% for online payment. What profit percentage does the shopkeeper make (correct to two places of decimals)?

Correct option is C

Given:

Marked Price (MP) is 18.8% above Cost Price (CP)

Discount allowed = 12.5%

We are to find the profit percentage

Formula Used:

Profit % = $$\left(\frac{SP - CP}{CP}\right) \times 100$$​​

Solution:

Let CP = ₹100

Then,

MP = $$100 \times \left(1 + \frac{18.8}{100}\right) = 100 \times 1.188$$​ = ₹118.80

SP = $$118.80 \times \left(1 - \frac{12.5}{100}\right) = 118.80 \times 0.875$$​ = ₹103.95

Profit % = $$\left(\frac{103.95 - 100}{100}\right) \times 100$$​ = 3.95%