The marked price of an item is 25% more than that of its cost price. If a discount of 10% is given on the marked price, then the gain percentage is:
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Correct answer: D
Explanation
The correct answer is option 4 i.e. %.
MP = CP + 0.25 × CP = 1.25CP
here, MP = Marked price, CP = cost price
SP(Selling price) = MP − 0.10 × MP = 0.90 × MP
⇒ SP = 0.90 × MP
⇒ SP = 0.90 × 1.25CP
Gain = SP - CP
⇒ 1.125CP - CP = 0.125CP
Gain% = 0.125CP/CP × 100 = %