Multiple choice

Michael sold an iPod to Sucre at a discount of 20% on the marked price and still earned a profit of 25%. By what percentage did Michael mark up the iPod above its cost price?

  1. 55 1 8 %

  2. 55 1 4 %

  3. 56 1 4 %

  4. 56 1 2 %

  5. 56 3 4 %
Reveal answer Fill a bubble to check yourself
C Correct answer
AI explanation

Let the cost price be 100. Selling at a 25% profit means the selling price is 125. This selling price results from a 20% discount on the marked price, so 125 is 80% of the marked price. The marked price is 125 divided by 0.80, which is 156.25. The markup above the cost price is 56.25%, which is 56 1/4%.

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