Two merchants sell an article for Rs. 2,000 each. Merchant P computes his profit on cost price while Merchant Q computes his profit on selling price. Both make a profit of 25% each. By how many rupees is the actual profit made by Q more than that made by P?
Two merchants sell an article for Rs. 2,000 each. Merchant P computes his profit on cost price while Merchant Q computes his profit on selling price. Both make a profit of 25% each. By how many rupees is the actual profit made by Q more than that made by P? Correct Answer <span lang="EN-IN" style=" line-height: 107%; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">100</span>
Calculation:
Since Q computes actual profit on S.P., actual profit for Q
⇒ 25% of 2000
⇒ Rs. 500
Since P computes actual profit on C.P., C.P. for P = 2000/1.25
Rs. 1600
∴ Actual profit for A = 25% of 1600
⇒ Rs. 400
∴ Required difference
⇒ 500 − 400
⇒ Rs. 100
The actual profit made by Q more than that made by P is of Rs. 100.