If the cost price is 84% of the selling price, then what is the profit percentage?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 19(1/21)%.
Given:
The cost price = 84% of the selling price
Formula used:
Profit = Selling price - cost price ---- (1)
Profit% = (Profit/cost price) × 100 ---- (2)
Calculations:
Let the selling price be 100x
Cost price = 84% of 100x = 84x
Using equation (1), we get
⇒ Profit = 100x - 84x = 16x
Using equation (2),
⇒ Profit% = (16x/84x) × 100
⇒ (4/21) × 100 = 19(1/21)%