SOLUTION: A merchant buys goods at 25% off the list price. She desires to mark the goods so she can give a discount of 20% on the marked price and still clear a profit of 25% of the list pri

Question 280053: A merchant buys goods at 25% off the list price. She desires to mark the goods so she can give a discount of 20% on the marked price and still clear a profit of 25% of the list price. As a percentage of the list price, the marked price is:
(A) 80% (B) 90% (C) 100% (D) 120% (E) 125%
Answer by richwmiller(17219) (Show Source): You can put this solution on YOUR website!
let's say the list price is 100
75 is purchase price
a profit of 25% of the list price would be 125 which would be 25 dollars
if the marked price is 100 then her profit would be 100-75=25 which would be the 25 dollars she wants to make
but she hasn't given the 20% discount yet
so if she marks the item at 120 and gives a 20% discount
1/5*125=25
100 would be the selling price which we need.
so the marked price 125 is 125% of the list price.
but her real profit (profit over cost) is 50/75=67%

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