Under a discount scheme, after allowing a discount of 20%, there is still a gain of 10%. The marked price is what percentage more than the cost price?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 37.5%
After discount of 20%, there is still a gain of 10%.
Marked Price/Cost Price = (100 + profit%)/(100 - discount%)
MP/CP = (100 + profit%)/(100 - discount%)
MP/CP = 110/80
MP/CP = 11/8
The marked price is percentage more than the cost price = (11 - 8) × 100/8 = 300/8 = 37.5%