Question

A shopkeeper sells an article at a 20 percent profit. If the cost price is Rs 500, what is the selling price?

• A. Rs 600
• B. Rs 550
• C. Rs 650
• D. Rs 700

Answer 1

The Correct Option is A

The selling price is calculated by adding the profit to the cost price. The profit is given as 20% of the cost price. The formula to calculate the selling price is: \[ \text{Selling price} = \text{Cost price} + \text{Profit}. \] First, calculate the profit: \[ \text{Profit} = \frac{20}{100} \times 500 = 100. \] Now, add the profit to the cost price to find the selling price: \[ \text{Selling price} = 500 + 100 = 600. \] Thus, the correct answer is (A) Rs 600.