A shopkeeper calculates his loss of 40% on selling price. Find his actual loss percent. 

  1. 20/3%
  2. 200/7%
  3. 12%
  4. 20%

Answer (Detailed Solution Below)

Option 2 : 200/7%
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Detailed Solution

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Given:

Loss of a shopkeeper (Calculating on S.P) = 40%

Formula Used:

Loss% = (C.P - S.P)/C.P × 100

Calculation:

Actual formula = Loss% = (C.P - S.P)/C.P × 100

But shopkeeper used incorrect formula = Loss% = (C.P - S.P)/S.P × 100

Let the S.P of a article be 100x, then C.P be 140x.

S.P is higher than S.P, then loss = 140x - 100x 

⇒ 40x

Loss percentage = (40x/140x) × 100

⇒ 200/7%

∴ Loss percent is 200/7%

 

We know that 40% = 2/5 

Let SP be 5 units 

Loss = 2 units 

Shopkeeper is calculating its loss on selling price

SP = CP - Loss 

⇒ 5 = CP - 2

⇒ CP = 7 units 

Actual loss = 2/7 × 100 = 200/7%

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