A dealer gives a 7% discount on the marked price and gives 1 article free for buying every 25 articles, thus gaining 25%. Find the percentage increase in the market price above the cost price (round up to two decimal places).
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 39.78%.
Let the C.P. be rs.100 then, the C.P. of 26 articles will be Rs.2600
Gain = 25%
Thus, S.P. of 25 articles = 2600 × 125/100 = Rs.3250
Discount = 7%
Thus,
⇒ 93% = 3250
⇒ M.P. = (3250 × 100)/93
⇒ M.P. = Rs.3494.62
Now, the M.P. of 1 article = 3494.62/25 = Rs.139.78
percentage increase = (139.78 - 100)/100 = 39.78%