Multiple choice

After allowing a discount of 16\%, there was still a gain of 5\%. The the percentage of marked price over the cost price is-

  1. 15%

  2. 18%

  3. 21%

  4. 25%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

SP after 16% discount = 0.84 × MP. This SP gives 5% gain on CP, so SP = 1.05 × CP. Equating: 0.84 × MP = 1.05 × CP, so MP/CP = 1.05/0.84 = 1.25. This means marked price is 25% above cost price. Options A (15%), B (18%), and C (21%) underestimate the markup needed.

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