At how much per cent above the cost price should a trader mark his goods so that after allowing a discount of 25%, he still gains 5%?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 40.
Let the marked price of the article be 100x.
SP = MP × (100 - D)/100
CP = SP × 100/(100 + P)
According to the given question,
SP = 100x × (100 - 25)/100
⇒ SP = 75x
Also, CP = 75x × 100/(100 + 5)
⇒ 75x × 100/105 = 500x/7
Required percentage = (100x - 500x/7)/(500x/7) × 100
⇒ (200x/500x) × 100 = 40%