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### Question

A merchant is selling cloth at a profit of 328%. If the cost increases by 7%, but he continues to sell at the same price, then what is the new profit percentage?

**A**

300%.

**B**

400%.

**C**

200%.

**D**

500%.

**Soln.**

**Ans: a**

Let the cost price be CP. Then the SP = CP x (1 + $328/100$) = $428/100$ × CP. New CP = (1 + $7/100$) × CP, which is $107/100$ × CP. New Profit% = (SP/CP - 1) × 100, which is $(({428/100 × CP}/{107/100 × CP}) - 1) × 100)$, which becomes $(428 - 107)/107$ × 100 = 300%.