Percentage , Profit and Loss

Question

IF After successive discounts of 20% and 6 1/4% on the Marked Price of an article ,a trader gets 20% profit on the cost Price ,then by what percent is the marked price above the cost price?

I have tried:

Let the marked priced be rs 100

for successive discounts i have tried:

100*80/100*25/400 = 5

after discounted price , that is selling price of an article is 95

he got 20% profit on cost price

95*20/100 = 19 , so i subtracted the value from the 95 i got 76

Atlast percentage calculation

i got

76/100*100 which gives 76 percent, so it is showing wrong,please anyone guide me for the answer and what i am dong mistake

Answer 1

My method to do is -

Let Cost price = 100

And 20% profit he get on selling.

So Selling price = 120

Let marked price x. So after two discounts on Marked price he receives 120.

$\frac{80}{100} × \frac{375}{400} × x = 120$

$x = 120 × \frac{100}{80} × \frac{400}{375}$

$x = 160$

Marked price is 60 above then cost price. So Marked price is 60% above Cost price.