What percentage above the cost price of an article should be marked so as to gain 25% after allowing a discount of 20%?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 56.25%.
Let cost price = 100
Let marked price = x
After 20% discount, the selling price = 0.8x
To gain 25%, selling price = 125
So, 0.8x = 125
x = 156.25
Percentage above cost price = 156.25 - 100 = 56.25%