Question

A trader bought some goods at a discount of 20% of the list price. He wants to mark them at such a price that he can give a discount of 20% on the marked price and still make a profit of 25%. Find the per cent of the list price at which he should mark the goods.

(a) 25% above the list price

(b) 15% below the list price

(c) 25% below the list price

(d) 15% above the list price

Answer 1

Correct option is (a) 25% above the list price

Cost price = 20% discount on the list price

That will be 80% of the list price

Cost Price = \(\frac{(80\times x)}{100}\)

Cost Price = \(\frac{4x}{5}\)

The profit is 25% on the selling price.

So, selling price = 125% of the cost price.

\(= \frac{125}{100} \times \frac{4x}5\)

\(= x\)

Let the marked price be Rs y

If the merchant gives 20% discount,

Then 80% of marked price = Selling price

⇒.\(\frac{80 y}{100} =x\)

After cross multiplying, we get.

100x = 80y

\(y = \frac{5x}4\)

The percentage of the list price at which the merchant marks the goods 

Hence the price should be 25% above the list price.