What percent more than the cost price should a shopkeeper keep the marked price of his goods so that after giving a discount of 8% on the marked price, he still gets a profit of 15%?

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RRB Group D Previous Year Paper (Held on: 26 Aug 2022 Shift 2)
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  1. 40%
  2. 25%
  3. 30%
  4. 27%

Answer (Detailed Solution Below)

Option 2 : 25%
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Detailed Solution

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Given:

Cost Price (CP) = ₹100 (assumed)

Profit = 15%

Discount = 8%

Formula used:

Selling Price (SP) = CP + Profit

Marked Price (MP) = SP / (1 - Discount)

Calculation:

SP = 100 + 15

⇒ SP = 115

MP = 115 / (1 - 0.08)

⇒ MP = 115 / 0.92

⇒ MP ≈ 125

Percentage increase in MP over CP = ((125 - 100) / 100) × 100

⇒ Percentage increase ≈ 25%

∴ The correct answer is option (2).

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