Multiple choice

Marked price of a commodity is 60% above the cost price. If the shopkeeper gives a discount of 25%, how much does he gain?

  1. 20%

  2. 25%

  3. 35%

  4. 45%
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A Correct answer
Explanation

Let the cost price be 100. The marked price is 60% above the cost price, which is 160. A discount of 25% on the marked price reduces the selling price to 160 * 0.75 = 120, resulting in a gain of 20%.

AI explanation

Let the cost price be 100, making the marked price 160 since it is 60 percent above the cost price. A 25 percent discount applies to the marked price, calculated as 160 times 0.25, which is 40. The selling price becomes 160 minus 40, equaling 120. The resulting gain is 20 percent.

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