Question

When discount of 20% is offered on marked price, the selling price becomes equal to cost price. Find the percentage by which marked price is more than the cost price.

1. 14%
2. 20%
3. 30%
4. 25%

Answer 1

Correct Answer - Option 4 : 25%

Given:

With discount offered equal to 20% on marked price, the selling price becomes equal to cost price.

Concepts used:

M.P. = S.P. + Discount

Discount % = Discount/M.P. × 100

Calculation:

Let M.P. be Rs. x.

Discount % = 20

⇒ (x – S.P.)/x × 100 = 20

⇒ x = 5S.P./4

⇒ S.P. = 4x/5

As S.P. = C.P.,

⇒ C.P. = 4x/5

⇒ Marked up percentage = (M.P. – C.P.)/C.P. × 100 = [{x – (4x/5)}/(4x/5)] × 100 = 25%

∴ M.P. is more than C.P. by 25%.