Question

A person loses one-fifth of the cost price by selling an article for Rs. 120, If the selling price of an article is Rs. 180, then find the profit percentage.
1. 20% 
2. 25%
3. 30%
4. 40%

Answer 1

Correct Answer - Option 1 : 20% 

Given:

A person loses 1/5th of the cost price by selling an article = Rs. 120

Formula used:

P % = {(SP - CP)/CP} × 100

Where, 

SP is Selling price, CP is Cost price and P % is the Profit percentage

Calculations:

Let the cost price be y

According to the question, we have

The loss incurred is 

⇒ Loss = y/5

Then, the Cost price is 

⇒ y - (y/5) = 120

⇒ 4y/5 = 120

⇒ y = (120 × 5)/4

⇒ y = Rs. 150

If the selling price is Rs. 180, then the profit percentage is 

⇒ P % = {(180 - 150)/150} × 100

⇒ P % = (30/150) × 100

⇒ P % = 20%

∴ The profit percentage is 20%.