Multiple choice

A shopkeeper marks his goods at 25% above the cost price and allows customers a discount of 12(1/2)% for cash payment. The profit, he makes, is

  1. 9(3/8)%

  2. 9(1/2)%

  3. 8(1/2)%

  4. 8(3/8)%

  5. 8(5/8)%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let CP = 100. Marked price = 125 (25% above CP). After 12.5% discount, SP = 125 × 0.875 = 109.375. Profit = 109.375 - 100 = 9.375%, which equals 9(3/8)%. Options B, C, D, and E are common miscalculations from incorrect discount or markup formulas.

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