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1. A trader sells his goods at a discount 20%. He still makes a profit of 25%. If he sells the goods at the marked price only, his profit will be:

A. 56.25%

B. 25.56%

C. 50.25%

D. 54.25%

Solution:

Let the marked price = Rs. 100
Then, SP = 100 - 20% of 100 = Rs. 80
Profit = 25%
Let His CP = X
SP = 80
X + 25% of X = 80
Hence, X = Rs.

\frac{100 \times 80}{125}

= Rs. 64
CP = Rs. 64
Profit after selling on marked price = 100 - 64 = Rs. 36
% gain =

\frac{36 \times 100}{64}

= 56.25%

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