A trader gave a 20% discount on the market price but still earned a 10% profit. What percentage was the market price above the cost price?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 37.5%.
Let CP = 100
Profit 10% ⇒ SP = 110.
MP = 110/0.8 = 137.5
MP above CP = 137.5 - 100 = 37.5%