A shopkeeper earned a profit (in ₹) by selling an item, which is three times the discount offered (in ₹). If the discount offered is 6.25%, what is his profit percentage?

25%

LET THE COST AND MARKED PRICES BE 'C' AND 'M'

DISCOUNT OFFERED = 0.0625M

SELLING PRICE = M-0.0625M = 0.9375M

PROFIT 3*0.0625M = 0.1875M

COST PRICE SELLING PRICE-PROFIT=0.9375M-0.1875*M=0.75*M

PROFIT PERCENTAGE = (PROFIT/COST PRICE)*100 = (0.1875M/0.75*M)*100 = 25

The correct answer is Option (2) → 25%