Question

A wholesaler sells $20$ pens at the marked price of $16$ pens to a retailer. The retailer in tum sells them giving a discount of $2\%$ on the marked price. The gain percent to the retailer is

• A. $20\%$
• B. $25\%$
• C. $22.5\%$
• D. $24\%$

Answer 1

Answer: (C)

$22.5\%$

Let the M.P. of $1$ pen $=$ Rs. $1$.

Then, C.P. of retailer, i.e., C.P. of $20$ pens
$=$ M.P. of $16$ pens
$=$ Rs. $16$
S.P. of $20$ pens $=98\%$ of Rs. $20=$ Rs. $19.60$
$\therefore$ Profit $\%$ $=\frac{(19.6-16)}{16}\times 100$
$=\frac{3.6}{16}\times 100=22.5\%$.