Multiple choice

The selling price of an article is 87.5% more than the cost price and the discount offered on its marked price is 16.66%, then the ratio of its cost price to its marked price is:

  1. $4:9$
  2. $3:5$
  3. $4:7$
  4. $5:11$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let CP = 100. SP = 100 + 87.5 = 187.5. Discount = 16.66% = 1/6 on MP. So SP = 5/6 MP = 187.5, MP = 187.5 × 6/5 = 225. CP:MP = 100:225 = 4:9. Option B (3:5) would give CP:MP = 3:5 = 60:100, meaning SP = 83.33 at 1/6 discount, which is only 83.33% of CP, not 187.5%.

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