CAT 2023 Slot 3 QA Question 8: A merchant purchases a cloth at a rate of Rs.100 per meter and receives 5 cm length of cloth free for every 100 cm length of cloth purchased by him. He sells the same cloth at a rate of Rs.110 per met

Question

A merchant purchases a cloth at a rate of Rs.100 per meter and receives 5 cm length of cloth free for every 100 cm length of cloth purchased by him. He sells the same cloth at a rate of Rs.110 per met

Accepted Answer

For every 100 cm paid for by the merchant, he receives 105 cm. So the cost of 95 cm of cloth is

$100 	imes \dfrac{95}{105} = \dfrac{9500}{105}$

He sells a nominal 100 cm at Rs.110, but after a 5% discount, he receives

$110 	imes 0.95 = 104.5$

For this sale, he actually gives only 95 cm of clot