Question

A motorbike was sold by a showroom for Rs. 80,000. The owner then sold this bike at Rs. 60,000. Find the percentage of profit or loss.

• A. 20%
• B. 25%
• C. 30%
• D. 35%

Answer 1

The correct option is B

25%

As the selling price is less than the cost price the showroom occurred loss.
Loss = Difference in the amount for which it was purchased and the amount for which it was sold.

Percentage of loss
= $\frac{\text{loss}}{\text{original amount for which it was purchased}}\times 100$

i.e. $\frac{20000}{80000}\times 100=25\%$