Multiple choice

If the cost price is 80% of the selling price, then what is the profit in percentage?

  1. 20%

  2. 25%

  3. 16%

  4. 22.5%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

CP = 0.8 * SP. Profit = SP - CP = SP - 0.8 * SP = 0.2 * SP. Profit % = (Profit / CP) * 100 = (0.2 * SP / 0.8 * SP) * 100 = (1/4) * 100 = 25%.

AI explanation

Let the selling price be Rs. 100. The cost price is 80% of the selling price, making it Rs. 80. The profit amount is 100 - 80 = Rs. 20. Using the profit percentage formula, (20 / 80) * 100 = 25%. The result is 25%.

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