A shopkeeper allows a discount of 20% on the marked price. What price must be marked on an article costing ₹3360, so as to make a gain of 25%?

Correct option is B

Given:

Cost Price (CP) = ₹3360

Discount = 20% on Marked Price (MP)

Required Gain = 25%

Find the Marked Price.

Formula Used:

Selling Price (SP) = $$\text{CP}\left(1+\frac{\text{Gain \%}}{100}\right)$$​​

SP = $$\text{MP}\left(1-\frac{\text{Discount \%}}{100}\right)$$​​

Solution:

Selling Price for 25% gain:

SP = $$3360 \times \frac{125}{100}$$​ = 4200

Given 20% discount:

SP = 0.8 × MP

So,

0.8 × MP = 4200

MP = $$\frac{4200}{0.8}$$​ = ₹5250

Alternate Solution (Exam Trick):