Multiple choice

'A' buys a pen for Rs 4 and sells it for Rs 5. He calculates his profit first as a percentage of the buying price then as a percentage of the selling price. The difference between these two is

  1. 20%

  2. 10%

  3. 5%

  4. 15%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Cost = 4, Selling = 5. Profit = 1. Profit % on cost = (1/4) * 100 = 25%. Profit % on selling = (1/5) * 100 = 20%. Difference = 25% - 20% = 5%.

AI explanation

The profit is calculated as Rs. 5 - Rs. 4 = Re. 1. Profit percentage on the buying price is (1 / 4) * 100 = 25%. Profit percentage on the selling price is (1 / 5) * 100 = 20%. The difference between these two percentages is 25% - 20% = 5%. The result is 5%.

Keep practicing — related questions