Question

If a merchant estimates his profits as $20$ $\%$ of the selling price, what is his real profit percent.

• A. $25$ $\%$
• B. $20$ $\%$
• C. $22$ $\%$
• D. $30$ $\%$

Answer 1

The correct option is A $25$ $\%$

Suppose SP $=$ Rs. $100$
Profit $=$ Rs. $20$
CP $=100-20=$ Rs. $80$
Profit $\%=$ $\frac{\text{profit}}{\text{CP}}\times 100=\frac{20}{80}\times 100$
$=25\%$