If the selling price of 20 pens is equal to the cost price of 16 pens, then find the loss percentage.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 20%
Loss percentage is always worked out on the cost price. Here the selling price of 20 pens covers the cost of only 16 pens, so on 20 pens the loss is the cost of 4 pens.
Assuming the cost price of one pen to be ₹1:
Cost price of 20 pens \(=\) ₹20
Selling price of 20 pens \(=\) cost price of 16 pens \(=\) ₹16
Loss \(=20-16=\) ₹4
Loss% \(\displaystyle =\frac{4}{20}\times100=20\)%