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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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