Correct Answer - Option 2 : 16
Given:
20 CP = x SP
profit = 25 %
CP = cost price of article
SP = selling price of the article
Formula used:
Profit % = (Profit/CP) × 100
Here, SP → Selling price, CP → Cost price
Calculation:
20 CP = x SP
⇒ SP/CP = 20/x
Profit = (20 - x)/x
Given profit = 1/4
equating both
(20 - x)/x = 1/4
⇒ 80 = 5 x
⇒ x = 16