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A merchant purchases a cloth at a rate of Rs.100 per meter and receives 5 cm length of cloth free for every 100 cm length of cloth purchased by him. He sells the same cloth at a rate of Rs.110 per meter but cheats his customers by giving 95 cm length of cloth for every 100 cm length of cloth purchased by the customers. If the merchant provides a 5% discount, the resulting profit earned by him is:

CAT · 2023 · Quant Slot 3
Question:
A merchant purchases a cloth at a rate of Rs.100 per meter and receives 5 cm length of cloth free for every 100 cm length of cloth purchased by him. He sells the same cloth at a rate of Rs.110 per meter but cheats his customers by giving 95 cm length of cloth for every 100 cm length of cloth purchased by the customers. If the merchant provides a 5% discount, the resulting profit earned by him is:

Options

(1) 4.2%
(2) 15.5%
(3) 16%
(4) 9.7%
Answer: (2) 15.5%

Explanation:
Step 1: Effective cost price per meter Pays Rs.100 for 105 cm → cost per meter = 100 / 105 × 100 ≈ Rs.95.238 Step 2: Effective selling price per meter Charges Rs.110 for 95 cm → SP per meter = 110 / 0.95 ≈ Rs.115.789 After 5% discount → SP = 115.789 × 0.95 ≈ Rs.110 Step 3: Profit percentage Profit % = (SP − CP) / CP × 100 = (110 − 95.238) / 95.238 × 100 ≈ 15.5% Answer: 15.5%

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