SOLUTION: A dealer allows a discount of 25% on the marked price. How much must he mark his goods above the cost price to make a profit of 20% ? (hint let cp 100)

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Question 1053407:
A dealer allows a discount of 25% on the marked price. How much must he mark his goods above the cost price to make a profit of 20% ?
(hint let cp 100)
Answer by jorel555(1290) About Me  (Show Source):
You can put this solution on YOUR website!
Let cp, or the cost price, be 100. In order to profit by 20%, he must mark his goods at 120. In order to offer a 25% discount, we have:
.75n=120
n=120/.75=160
160/100=1.6, or a 60% markup over his cost to realize a 20% profit while still giving the end-buyer a 25% discount. ☺☺☺☺