A storekeeper sold a wrist watch for $660, including a sales tax of 10%. If the cost price of the watch is $500, what is the percentage profit for shopkeeper ?



A storekeeper sold a wrist watch for $660, including a sales tax of 10%. If the cost price of the watch is $500, what is the percentage profit for shopkeeper ?

A. 25%

B. 15%

C. 10%

D. 20%

Answer : D. 20%


Explanation:

    $660 = Selling Price + Sales Tax (110%)
    Actual selling price without including sales tax = 100 / 110 * $660 = $600
    Cost Price = $500
    Profit = Selling Price - Cost Price
    = $600 - $500
    = $100
    Therefore profit percentage = Profit / Cost Price
    = (100 / 500 ) * 100%
    = 20%.


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