By how much above the cost price should an article be marked up for sale so that after allowing two successive discounts of 20% and 6.25% on it, a net gain of 20% is made on the cost?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 60%
Let the cost price be Rs. 100 & the marked price be Rs.'x'
Selling price = 120
Equivalent discount = 20 + 6.25 - (20 × 6.25)/100
⇒ 25%
Marked Price - Selling Price = Discount
⇒ x - x/4 = 120
⇒ 3x/4 = 120
⇒ x = 160
Markup % = 160 - 100
⇒ 60%