Question 102

How much percent more than the cost price should a shopkeeper mark his goods so that after allowing a discount of 25% on the marked price, he gains 20% ?

Solution

Let the cost price of article be Rs 100.

Now to gain 20% profit, shopkeeper needs to sale the article at = (100+ 20) = 120 Rs

but we will achieve this selling price after 25% discount on Marked Price

So if Marked Price = M

then Selling Price = 0.75 M = 120

M = Rs 160

Hence Marked Price = Rs 160 and it is 60% more than cost price

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