After allowing a discount of 12.5%, the shopkeeper makes a profit of 25% on a bag. At what percent higher than the cost price did he mark the bag? (correct to the nearest integer)
Answer & explanation
Correct answer: option 2
CP MP
100 - D% 100 + P%
100 - 12.5% 100 + 25%
87.5 125
Markup % = (125 - 87.5) × \(\frac{100}{87.5}\) = 43%