A shopkeeper marks up an item by 25% above its cost price. If the cost price of the item is Rs. 500, what is the marked price (in Rs.)?

Correct option is B

Given:

Cost Price (CP) = ₹500

Markup = 25%

Formula Used:

MP = $$\text{CP} \times \left(1 + \frac{\text{Markup \%}}{100}\right)$$​​

Solution:

MP = $$500 \times \left(1 + \frac{25}{100}\right)$$​

​$$= 500 \times 1.25 = 625$$​​

Thus, Marked Price = ₹625