Final answer:
To calculate the shopkeeper's profit percent, we determine the selling price after a 5% discount on the marked price, which is 25% above the cost price. The profit is calculated by subtracting the cost price from the selling price. The closest rounded option to our calculated profit percent of 18.75% is 20%.
Step-by-step explanation:
To determine the profit percent the shopkeeper makes after selling an article at a discount, we need to calculate the selling price and then compare it to the cost price.
Let's assume the cost price of the article is $100 (for ease of calculation; any amount can be used as the actual cost price will be factored out).
The shopkeeper marks up the price by 25% of the cost price:
Marked Price = Cost Price + (25% of Cost Price) = $100 + ($100 × 0.25) = $125
Next, the shopkeeper allows a 5% discount on the marked price:
Discount = 5% of Marked Price = $125 × 0.05 = $6.25
Selling Price = Marked Price - Discount = $125 - $6.25 = $118.75
Now, we calculate the profit made:
Profit = Selling Price - Cost Price = $118.75 - $100 = $18.75
To find the profit percent, we use the formula:
Profit Percent = (Profit / Cost Price) × 100%
Profit Percent = ($18.75 / $100) × 100% = 18.75%
Since the answer is not listed among the options, it suggests that there has been rounding in the options provided. The closest option to the exact calculation is (c) 20%.