Multiple choice

By selling an article at one-fourth of the market price, there is a gain of 25\%. The ratio of the market price and cost price is :

  1. $42 : 52$
  2. $52 : 42$
  3. $4:5$
  4. $5:1$
  5. $62 : 52$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let market price = M and cost price = C. Selling price = M/4. Profit = 25%, so SP = 1.25C. Therefore M/4 = 1.25C, which gives M = 5C. The ratio M:C = 5:1.

Keep practicing — related questions