Question

A trader buys good at $20$% discount on marked price . If he wants to make a profit of $25$% after allowing a discount of $20$%, by what percent should his marked price be greater than the original marked price?

• A. $15$%
• B. $25$%
• C. $35$%
• D. $45$%

Answer 1

The correct option is B $25$%

Let original $MP$ be $x_1$

$(SP{)}_1=(1-$discount)$\times MP=0.8x_1$

Let $MP$ of the trader be $x_2$

$(SP{)}_2=(1-$discount)$\times MP=0.8x_2$

$(SP{)}_2=(1+$gain)$\times (CP{)}_2=1.25\times (CP{)}_2$

We know that $SP$ of original product $=CP$ of trader's product

$⟹(SP{)}_1=(CP{)}_2$

$⟹0.8x_2=1.25\times 0.8x_1$

$⟹x_2=1.25x_1$

Required percentage $=\frac{x_2-x_1}{x_1}\times 100=\frac{1.25x_1-x_1}{x_1}\times 100=25\%$