Question
A shopkeeper sets the selling price of an item higher
than its cost price. After offering a 4% discount, the shopkeeper earns a 20% profit. What percentage above the cost price did the shopkeeper initially mark the item?Solution
Let the selling price of the item be Rs. '120x'.Price at which the item is marked above its cost price = (120x/0.96) = Rs. '125x'Cost price of the item = (120x/1.2) = Rs. '100x'Required percentage = (125x – 100x)/100x X 100 = 25%
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