5% of (25% of Rs 1,600) is:

The correct answer is Option (3) → Rs 20

The bracket is worked out first, and the outer percentage is then taken of that result.

• 25% of 1600 \(\displaystyle =\frac{25}{100}\times1600=400\)

• 5% of 400 \(\displaystyle =\frac{5}{100}\times400=20\)

The value is Rs 20.