Multiple choice

By what fraction selling price (S.P.) must be multiplied to get the cost price (C.P.) if the loss is 20% ?

  1. $\(\frac{4}{5}\)$
  2. $\(\frac{5}{4}\)$
  3. $\(\frac{8}{5}\)$
  4. $\(\frac{5}{8}\)$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When loss is 20%, SP = 80% of CP, so SP = 4/5 × CP. To find CP from SP, we multiply SP by the reciprocal of 4/5, which is 5/4. Therefore, CP = SP × (5/4). Option A (4/5) would give us SP if we knew CP, but we need the reverse.

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