Ranveer bought a computer paying 25% less than the list price and sold it to his neighbour at a 40% profit on his purchase cost. The profit percentage earned by Ranveer on the list price of the computer is:
Answer & explanation
Correct answer: option 4
Let the price of the computer = 100
Cost price for the ranveer at 25% discount = 75% of 100 = 75
Profit earned by ranveer = 40%
Selling price of ranveer = 140% of 75 = 105
The profit earned by ranveer on the list price = 105 - 100 = 5%
Profit % = 5 × \(\frac{100}{100}\) = 5%