A shop keeper allows a 25% discount and gains 20%. How much of the percentage is above the Marked Price on the Cost Price?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e 60%.
Let CP = 100
Gain = 20% → SP = 120
Discount = 25% → SP = 75% of MP
So, 120 = 75% of MP
MP = 120 ÷ 0.75 = 160
Now, MP compared to CP:
160 – 100 = 60% above CP.