Multiple choice

By selling an article, a man makes a loss of 25\% of its selling price. His actual loss percent is ?

  1. 20%

  2. 25%

  3. 15%

  4. 30%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let SP = selling price, CP = cost price. Loss = 25% of SP = 0.25 × SP. So CP - SP = 0.25 × SP, meaning CP = 1.25 × SP. Actual loss percent = (CP - SP) / CP × 100 = 0.25 × SP / (1.25 × SP) × 100 = 0.25 / 1.25 × 100 = 20%. The key insight is that loss is calculated on SP, not CP.

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