Question

What percent above the cost price should a shopkeeper mark his goods so that after allowing a discount of 25% on the marked price, he gains 14% ?

Answer 1

The actual question is by what percentage the Marked Price is greater than Cost Price so that after discounting 25% ,profit is 14%.

we can solve this problem by taking Cost Price,CP=100

If profit is 14% ,then Selling price SP=114

If he discount 25% from Marked Price,SP is 75%(=100-25) of the Marked Price(MP)

Now we can write ,

SP=75% of MP

114=(75/100)×MP

114=3/4 × MP

MP=114× 4/3

MP=152

Now,

CP=100

MP=152

Therefore MP is 52% more than CP.