Ruby bought 20 buttons for Rs.1. How many buttons she must sell for Rs.1 in order to get a profit of 25%?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 16
Ruby buys 20 buttons for Rs. 1.
Desired profit = 25%
Ruby's cost price per button = Rs. 1/20
For a 25% profit, the selling price per button = 125% of the cost price = 1.25 × (1/20) = Rs. 1/16
Number of buttons she can sell for Rs. 1 at this selling price = 1/(1/16) = 16 buttons