Buy at 25% discount, sell at 40% above purchase: A man purchases a shirt and a pant at 25% off the marked price and later sells them for 40% more than his purchase price. The new selling price is what percent of the marked price?

Introduction / Context:
This is a compound percentage problem across two stages: first a discount from MP to purchase price, then a markup from purchase to selling price. We are asked to compare the final SP to the original MP in percentage terms.

Given Data / Assumptions:

• Purchase price = 0.75 * MP (25% discount).
• Final SP = 1.40 * Purchase price.

Concept / Approach:
Compute SP/MP = 1.40 * 0.75 = 1.05. That means the final SP is 105% of MP, i.e., 5% above the marked price. The percentage asked is the excess over MP (or simply state 105% of MP, i.e., 5% more than MP).

Step-by-Step Solution:

Verification / Alternative check:
Let MP = 100 ⇒ purchase = 75 ⇒ SP = 75 * 1.40 = 105 ⇒ exactly 5% above 100.

Why Other Options Are Wrong:
7.5%, 9%, 12.5% do not match the computed 1.05 multiplier.

Common Pitfalls:
Subtracting 25% and 40% or averaging them, instead of compounding correctly.

Final Answer:
5%