Mohit earns a profit of ₹54 on selling a pencil for ₹144. What is the profit percentage?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 60%
Let's denote the cost price of the pencil as C. According to the problem, the selling price is ₹144 and the profit is ₹54. We can use the formula for calculating profit percentage:
Profit Percentage = (Profit / Cost Price) × 100%
We can solve the cost price as follows:
Selling Price = Cost Price + Profit
₹144 = C + ₹54
C = ₹90
Now we can substitute the values we have into the formula for profit percentage:
Profit Percentage = (₹54 / ₹90) × 100%
Profit Percentage = 60%
Therefore, the profit percentage is 60%.