Question

A shopkeeper is allowing a discount of 20% on his goods, how much percent above the cost
should he mark his goods, so that after allowing a discount on the marked price, he gain 25%​

Answer 1

Question :

A shopkeeper is allowing a discount of 20% on his goods, how much percent above the cost

should he mark his goods, so that after allowing a discount on the marked price, he gain 25%

Solution :

Let us assume selling price S , Marked price M , cost price C

We know that

Profit = selling price - cost price = S-C

But here we are given 20% discount on MP

Price = 0.8*M

Now ,

profit target is 25% of cp

=0.25*C

Keeping vale if profit in equation we will get

0.25*C = 0.8*M - C

By solving equation

M = 1.25/0.8 C

= 1.6 C ( approx )

Hence marked price should be 1.6 times of cost price to get a profit of 25 % on product after selling it .