A wholesaler sells 20 pens at the marked price of 16 pens to a retailer. The retailer sells them at the marked price. Determine the gain percent of the retailer.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 25%
The retailer pays the marked price of 16 pens but gets 20 pens, and sells all 20 at the marked price. His gain is the price of the 4 free pens, taken on what he paid.
Assuming the marked price of one pen to be ₹1:
Cost price of 20 pens \(=\) ₹16
Selling price of 20 pens \(=\) ₹20
Gain \(=\) ₹4, and gain percent \(\displaystyle =\frac{4}{16}\times100=25\%\)