Multiple choice

A merchant buuys goods at 20% discounts if he want to get a profit of 25% after giving 20% discount then his marked price is how much percent more than the original marked price?

  1. 15%

  2. 65%

  3. 25%

  4. 20%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let original marked price = M. Cost after 20% discount = 0.8M. Desired 25% profit means SP = 1.25 × 0.8M = M. After 20% discount on new marked price M': 0.8M' = M. So M' = 1.25M, which is 25% more than M. The merchant compensates for both discounts by raising the marked price.

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