Question

'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

• A. 20%
• B. 10%
• C. 5%
• D. 15%

Answer 1

The correct option is C 5%

When Rs 4 pen is sold for Rs 5 profit is

Selling price -Cost price

(5-4)=1

Profit as percantage of buying price is$=\frac{1}{4}\times 100=25$

Profit as percantage of selling price will be$=\frac{1}{5}\times 100=20$

difference between these two profits is(25-20)=5%