Correct Answer - Option 1 : 5%
Given:
Cost price (C.P.) ∶ Selling price (S.P.) = 20 ∶ 21.
Formula used:
Profit = S.P. – C.P.
Profit % = (P/C.P.) × 100
Where
P → Profit
S.P. → Selling price
C.P. → Cost price
Calculations:
Let the CP be 20x and SP be 21x.
Then, Profit = 21x – 20x = x
Profit % = (x/20x) × 100 = 5%
∴ The required Profit% is 5%.