By selling an article for Rs. 100, a man gains Rs. 20. Then his percentage gain is?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 25%
Gain per cent is always worked out on the cost price, not on the selling price. The gain is the selling price minus the cost price, so the cost price is found first.
Cost price, the selling price less the gain: \(100-20=\) Rs. 80
Gain as a per cent of the cost price: \(\displaystyle\frac{20}{80}\times100=25\%\)
Tip: Working the gain on the selling price, \(\frac{20}{100}\times100\), gives 20%, which is also among the options; the base is always the cost price.