Multiple choice

A store sells a watch for a profit of 25% of its cost price. Then the percentage of profit against selling price is:

  1. 22%

  2. 20%

  3. 18%

  4. 15%

  5. 0

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let the cost price of the watch be 100. A profit of 25% of the cost price means the profit is 25, making the selling price 125. The profit percentage relative to the selling price is therefore (25 / 125) * 100 = 20%.

AI explanation

Let the cost price be 100; a 25% profit on the cost price makes the selling price 125. The profit amount is 25, and calculating this profit against the selling price gives 25 divided by 125, which equals 0.20. Converting this to a percentage yields 20%.