By what percent the new price of the article must be increased to restore its former value, if the cost of the article is cut by 25% in the past?
Answer & explanation
Correct answer: option 2
If the cost price is cut by 25% then,
CP After cutting
100 75
To restore earlier CP the CP must be increased by
75 100
so increase percentage = ( 100 - 25 ) × \(\frac{100}{75}\) = $33\frac{1}{3}$%