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
According to question ,
Selling price of 20 pens = Marked price of 16 pens
Selling price of 1 pen : Marked price of 1 pen = 16 : 20
= 4 : 5
Gain percent = \(\frac{5 - 4}{4}\) × 100%
= \(\frac{1}{4}\) × 100%
= 25%