AFCAT Model Paper 5

Given:
A car dealer buys an old car marked at Rs. 15,000
The dealer buys the car with two successive discounts of 20% and 5%.
Expenditure on the car = Rs 1500
The selling price of the car = Rs. 20000
Calculation:
CP of car for the dealer after first discount i.e 20% = (15000 – 20 %)
⇒ (15000−

20

100

×15000)
⇒ (15000 – 3000)
⇒ 12000
CP of car for the dealer after second discount i.e 5% =12000−

5

100

×12000
⇒ 12000 – 600
⇒ 11400
He spends Rs. 1,500 on its repairs and sells the car for Rs. 20,000
Total CP for dealer = Rs 11400 + 1500
⇒ Rs 12900
SP for dealer = Rs 20,000
Profit = SP – CP
⇒ Rs 20000 – Rs 12900
⇒ Rs 7100
Profit %=

Profit

CP

×100
⇒

7100

12900

×100
∴ The gain percent is 55.04%.