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    The marked price of an article is 25 percent more than its cost price. What maximum discount percentage can be offered by the shopkeeper to sell his a
    Question

    The marked price of an article is 25 percent more than its cost price. What maximum discount percentage can be offered by the shopkeeper to sell his article at profit?

    A.

    12.5 percent

    B.

    16.67 percent

    C.

    20 percent

    D.

    25 percent

    Correct option is C

    Given:
    Marked Price (MP) is 25% more than the Cost Price (CP).
    Formula Used:
    Discount percentage = [(Marked Price - Selling Price) / Marked Price] × 100
    To still make a profit, Selling Price > Cost Price.
    Solution:
    Let Cost Price (CP) = Rs. 100
    Then, Marked Price (MP) = 1.25 × 100 = Rs. 125
    To ensure a profit, Selling Price (SP) must be more than Rs. 100.
    The maximum discount is when SP = Rs. 100, i.e., no profit and no loss.
    Discount = MP - SP = Rs. 125 - Rs. 100 = Rs. 25
    Discount percentage = (25 / 125) × 100 = 20%

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