Question

A shopkeeper while selling the books, finds that the cost price of 20 books is the same as the selling price of 25 books. His loss or gain percent will be
1. 20% loss
2. 20% profit
3. 25% loss
4. 25% profit

Answer 1

Correct Answer - Option 1 : 20% loss

Given:

The cost price of 20 books = Selling price of 25 books

Concept:

Gain: The amount gained by selling a product with more than its cost price.

Loss: The amount by which cost price is more than selling price.

Formula Used:

Loss = Cost price – Selling Price

Loss percentage = (Loss/Cost Price) × 100

Calculation:

Let the Selling price of one book be 10 x

So, the selling price of 25 books = 250x

Cost price of 20 books = 250x

⇒ Cost price of 1 book = 250x/20 = 12.5x

Loss = 12.5x - 10x = 2.5x

Loss % = (2.5x/12.5x) × 100 = 2500/125 = 20%

∴ The loss percent is 20%.