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Interview Questions

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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 ?
  • Profit and Loss
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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 ?

Answer : D. 20%
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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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