A shopkeeper sells his articles at a profit of \(16\frac{2}{3}\)% on the selling price. What is his actual profit percentage on the cost price?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 20%
Here the profit is given as a part of the selling price. The actual profit per cent is always worked out on the cost price.
\(\displaystyle 16\frac{2}{3}\%=\frac{1}{6}\); let the selling price be Rs 6
Profit \(\displaystyle =\frac{1}{6}\times6=\) Rs 1
Cost price \(=6-1=\) Rs 5
Profit per cent on cost price \(\displaystyle =\frac{1}{5}\times100=20\)%
His actual profit is 20%.