Question

Namrataben brought 20 sarees at the cost of Rs. 200 per saree. She got Rs.5000 on selling these sarees. How much percentage profit or loss does she make
25% profit
25% loss
15% profit
20% profit

Answer 1

Hint: In this question we have to find out whether Namrataben makes a loss or profit and after that we have to estimate the percentage loss or profit. Therefore, we have to first estimate the cost price and selling price and then use the standard formula to estimate the profit or loss percentage.

Complete step-by-step answer:
It is given that Namrataben purchased 20 sarees for Rs. 200 each. The total money spent would be $\left( \text{Rs}\text{. }200 \right)\times 20=\text{ Rs}\text{. 4000}$.Therefore, the cost price which is the total money spent on buying the sarees would be
\[Cost\text{ }price\text{ }\left( C.P. \right)\text{ }=\text{ }Total\text{ }Money\text{ }spent\text{ }on\text{ }buying\text{ }the\text{ }sarees=\text{ }200\times 20=4000\].
The selling price would be the money she got by selling the sarees. Therefore,
$\text{Selling Price = Rs}\text{. 5000}$
We see that the selling price is higher than the cost price and hence she makes a profit. The formula for profit is given by
$\text{Profit = Selling Price - Cost Price}$
Therefore, in this case, the profit will be given by
$\text{Profit=Rs}\text{. 5000- Rs}\text{. 4000=Rs}\text{.1000}$.
The formula for percentage profit is given by
$\text{Percentage Profit=}\dfrac{\text{Profit}}{\text{Cost Price}}\times 100...........(1.1)$
Therefore, in this case
$\text{Percentage Profit=}\dfrac{Rs.1000}{Rs.4000}\times 100=25%$
Thus the profit made by Namrataben is equal to 25% which matches the answer in option (a). Therefore, option(a) is the correct answer.
Note: We should be careful while calculating the profit percentage as in equation (1.1), the denominator should be divided by the cost price and not the selling price.