Answer:
1. 60%
2. He paid Rs. 1285.71
Explanation:
1.
He buys an item for x.
He sells the item with a 25% of the marked price, and he still makes a 20% profit over his cost x.
He must sell for x + 20% of x which is the same as 1.2x.
Let the markup be y%.
Since he gives a 25% discount over the marked price, he sells for 75% of the marked price.
0.75(x + y% of x) = 1.2x
0.75(x + xy/100) = 1.2x
x + xy/100 = 1.6x
Divide both sides by x.
1 + y/100 = 1.6
Multiply both sides by 100.
100 + y = 160
y = 60
Remember that y is in percent, so the markup must be 60%.
Check:
He buys an item for $10.
He applies a markup of 60%. 1.6 × $10 = $16.
He has a price of $16 for this item.
Now he gives a 25% discount. That means the discounted price is 75% of the marked price.
75% of $16 = $12
He sells at a 25% discount for $12.
Compare the actual selling price after the 25% discount with this cost.
$12 compared to $10.
$12/$10 = 1.2 = 120%
Since he sells for 120% of the original price, the markup is 20% which is what he wanted.
2.
The cost to the seller is x.
If he sells it at a 20% profit, then he sells it for 1.2x
Now he gives a discount of 5%, so the final selling price after discount is
0.95(1.2x)
The profit is the difference between what he sold it for, 0.95(1.2x), and what he bought is for, x, and it is Rs. 180.
0.95(1.2x) - x = 180
1.14x - x = 180
0.14x = 180
x = 1285.71
Answer: He paid Rs. 1285.71