To find the businessman's stock at the end of the day, we first need to calculate the profit he made on the items sold on the first day.
Let's denote the cost price of the items sold on the first day as X.
Since the profit made on the items sold on the first day is 16% of their cost price, the profit can be calculated as:
Profit = (16/100) * X
Given that the profit for the day is 4% of the total purchases, the total purchases can be calculated as:
Total Purchases = (100/4) * Profit = 25 * Profit
We know that the total purchases were Rs. 1200, so we can set up the equation:
25 * Profit = 1200
Solving for Profit:
Profit = 1200 / 25 = 48 Rs
Since the profit made on the first day was 16% of the cost price of the items sold, we can set up the equation:
(16/100) * X = 48
Solving for X:
X = 48 * 100 / 16 = 300 Rs
Now, we can calculate the stock at the end of the day:
Stock at the end of the day = Total Purchases - Items Sold
Stock at the end of the day = 1200 - X = 1200 - 300 = 900 Rs
Therefore, the businessman's stock at the end of the day is Rs. 900.