Multiple choice

A shopkeeper gives 3 articles free on purchase of 5 articles. He also allows a discount of 20% and still earns 25% profit. Find the ratio of cost price and mark price

  1. 5 : 2

  2. 2 : 3

  3. 3 : 2

  4. 1 : 2

  5. 2 : 5
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Customer pays for 5 articles and gets 3 free, so receives 8 articles total. With 20% discount and 25% profit: Let CP per article = 1, MP per article = m. Total CP for 8 articles = 8. Customer pays for 5 at 80% of MP (after discount): 5 × 0.8m = 4m. This equals selling price with 25% profit: 8 × 1.25 = 10. Therefore 4m = 10, m = 2.5. So CP:MP = 1:2.5 = 2:5, which is option E.

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