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

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RPF Constable 2024 Official Paper (Held On 05 Mar, 2025 Shift 2)
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  1. 512.5
  2. 625
  3. 650
  4. 655

Answer (Detailed Solution Below)

Option 2 : 625
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Detailed Solution

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Given:

Cost Price (CP) = ₹500

Mark-up Percentage = 25%

Formula used:

Marked Price (MP) = CP × (1 + Mark-up Percentage/100)

Calculation:

MP = 500 × (1 + 25/100)

⇒ MP = 500 × (1 + 0.25)

⇒ MP = 500 × 1.25

⇒ MP = 625

∴ The correct answer is option (2).

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