Multiple choice

What percent of mark price should be raised then after getting $2.5 \%$ discount will give $22.5\%$ profit?

  1. $21\%$
  2. $23\%$
  3. $25\%$
  4. $27\%$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let the cost price be 100. To get 22.5% profit, the selling price must be 122.5. Since this is after a 2.5% discount on the marked price (MP), 0.975 * MP = 122.5, so MP = 122.5 / 0.975 = 125.64. The markup percentage is (125.64 - 100) / 100 = 25.64%, which is closest to 25%.

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