An item is marked 37.5% above the cost price. If a discount of 9.09% is allowed, then the profit percentage (correct to the nearest integer) is:

Let's assume the cost price of the article is 88y.

An item is marked 37.5% above the cost price.

MRP = 88y of (100+37.5)%

= 88y of 137.5%

= $$88y\times\frac{137.5}{100}$$

= 121y

If a discount of 9.09% is allowed.

Selling price = 121y of (100-9.09)%

= $$121y\times\ \left(1-\frac{1}{11}\right)$$

= $$121y\times\ \left(\frac{10}{11}\right)$$

= 110y

Profit percentage = $$\frac{\left(Selling\ price-Cost\ price\right)}{Cost\ price}\times\ 100$$

= $$\frac{\left(110y-88y\right)}{88y}\times\ 100$$

= $$\frac{22y}{88y}\times\ 100$$

= $$\frac{1}{4}\times\ 100$$

= 25%