Multiple choice

A merchant marked the price of an article by increasing its cost price by a certain percentage. On demand, he offered 20% discount and sold the article at the cost price. By what percentage is the marked price of the article more than its cost price?

  1. 20%

  2. 25%

  3. 80%

  4. 75%

  5. 40%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let CP = 100. MP = x. Selling Price = MP * 0.8 = 0.8x. Since SP = CP, 0.8x = 100, so x = 125. The markup is 25%.

AI explanation

Let the cost price be Rs 100, making the selling price Rs 100 after the 20% discount. Using the marked price formula, Marked Price = (Selling Price * 100) / (100 - Discount Percentage). Substituting the values gives Marked Price = (100 * 100) / 80 = 125. The percentage by which the marked price is more than the cost price is ((125 - 100) / 100) * 100 = 25%.

Keep practicing — related questions