Question

How much percent more than the cost price should a shopkeeper make his goods, so that after allowing a discount of 12.5% he should have a gain of 5% on his outlay?

• A. $9.375\%$
• B. $16.66\%$
• C. $20\%$
• D. $25\%$

Answer 1

The correct option is C $20\%$

Let the cost price be Rs. x and printed price be Rs y

Hence, price after giving a discount of
$12.5\%$

$=y-y\times \frac{12.5}{100}$
$Given,=y-y\times \frac{12.5}{100}=x+x\times \frac{5}{100}$

$\Rightarrow y\times \frac{87.5}{100}=x\times \frac{105}{100}$

$\therefore y=\frac{105}{87.5}x\Rightarrow y-x=\frac{105}{87.5}x-x=\frac{17.5}{87.5}x$

Required Percentage
$=\frac{y-x}{x}\times 100=\frac{17.5}{87.5}\times 100=20\%$