Multiple choice

An article is marked 25% above its cost price. If (x)% discount is allowed on the marked price and still there is a profit of 5.5%, then what is the value of (x)?

  1. 15.6

  2. 15.4

  3. 15.2

  4. 15.3
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A Correct answer
Explanation

Let cost price = 100. Marked price = 125 (25% above cost). After x% discount, selling price = 125(1 - x/100). Profit = 5.5%, so selling price = 105.5. Therefore 125(1 - x/100) = 105.5, giving 1 - x/100 = 0.844, so x/100 = 0.156, and x = 15.6. The discount brings the marked price down to achieve the desired profit margin.

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