Question

how much % above the cost price should a dealer mark his goods, so that after allowing a discount of 20%,he makes a profit of 25%

Answer 1

Let the cost price be 100. 

Gain = 25%. 

Therefore, selling price =  125. 

Let the marked price be x. 

Then, discount = 20% of $x 

                         = (x * 20/100) 

                         =  x/5

Therefore, selling price = (Marked Price) - (discount) 

                                       = x - x/5

                                      = 4x/5

Therefore 4x/5 = 125

x = 125 * 5/4

   = 156.2.

   =~160
 

Hence the marked price will be 60% above the cost price.