Question

Find the profit or loss percent in a transaction where the cost price is ₹ 20 and the selling price is ₹16.

• A. Profit of 20%
• B. Profit of 25%
• C. Loss of 20%
• D. Loss of 25%

Answer 1

The correct option is C

Loss of 20%

Given:
Cost price (CP) = ₹ 20
Selling price (SP) = ₹ 16

Since CP $>$ SP, there is a loss incurred which is calculated as:

Loss = CP - SP = ₹ (20 -16) = ₹ 4

$\text{Loss}\%=\frac{\text{Loss}}{\text{CP}}\times 100$

$=\frac{₹4}{₹20}\times 100$

$=\frac{1}{5}\times 100$

$=20\%$