The selling price of a pen is ₹660. If the profit is 20%, then what is the nominal profit earned on the sale of the pen?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹110.
Concept Used :
Profit = S.P. - C.P.
Given :
S.P. = ₹660
Profit % = 20%
Now, C.P. = S.P. × 100/(100 + P)
C.P. = 660 × 100/120
C.P. = 660 × 5/6
C.P. = 550
Now, profit = S.P. - C.P. = 660 - 550 = 110.
Hence the required nominal profit is ₹110.