If the CP is $96\%$ of the SP, then what is the profit percentage?
- $\displaystyle4\frac{1}{6}\%$
- $\displaystyle4\frac{1}{3}\%$
- $\displaystyle4\frac{1}{2}\%$
-
5%
Reveal answer
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A
Correct answer
Explanation
CP = 0.96 * SP. Profit = SP - CP = SP - 0.96 * SP = 0.04 * SP. Profit % = (Profit / CP) * 100 = (0.04 * SP / 0.96 * SP) * 100 = (4/96) * 100 = 100/24 = 25/6 = 4.166... = 4 1/6%.
AI explanation
Assume the selling price is 100, which makes the cost price 96 based on the given ratio. The profit amount is 100 minus 96, which equals 4. Using the profit percentage formula, Profit Percentage equals Profit divided by Cost Price multiplied by 100, giving 4 divided by 96 multiplied by 100. The resulting profit percentage is 25 divided by 6, which equals 4 and one-sixth percent.