The cost price of 20 articles is equal to the selling price of 16 articles. Find the profit percentage.

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  1. 15%
  2. 22%
  3. 20%
  4. 25%

Answer (Detailed Solution Below)

Option 4 : 25%
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Detailed Solution

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Given:

Cost Price (CP) of 20 articles = Selling Price (SP) of 16 articles

Formula used:

Profit Percentage = \(\frac{Profit}{CP} \times 100\)

Profit = SP - CP

Calculation:

Let the cost price of each article be ₹1.

⇒ CP of 20 articles = ₹20

⇒ SP of 16 articles = ₹20

⇒ SP of 1 article = \(\frac{20}{16} = 1.25\)

⇒ SP of 20 articles = \(20 \times 1.25 = 25\)

⇒ Profit = SP - CP = \(25 - 20 = 5\)

⇒ Profit Percentage = \(\frac{5}{20} \times 100 = 25\%\)

∴ The correct answer is option (4).

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