After giving a discount of 25%, a shopkeeper earns 40% profit. Marked price is what percent more than the cost price?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 86.67%.
| Understanding/Application |
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Discount% = 25% Profit% = 40% Cost Price : Marked Price = (100 - Discount%) : (100 + Profit%) = (100 - 25) : (100 + 40) = 75 : 140 C.P. : M.P. = 15 : 28 Let the C.P. be 15x and M.P. be 28x. Difference between M.P. and C.P. = 13x |
| Percentage by which M.P. is greater than C.P. = [(13x/15x) × 100] = 260/3 = 86.67% |