The cost price of an article is Rs. 5,000. What should the selling price of the article be so that a profit of 25% is earned?

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RRB Group D 9 Sept 2022 Shift 2 Official Paper
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  1. Rs. 8,250
  2. Rs. 7,250
  3. Rs. 5,250
  4. Rs. 6,250

Answer (Detailed Solution Below)

Option 4 : Rs. 6,250
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Detailed Solution

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Given:

Cost price = Rs. 5,000

Profit = 25%

Formula used:

Selling price = Cost price × \(\frac{(100 + Profit\%)}{100}\)

Calculation:

According to the question,

Selling price = Cost price × \(\frac{(100 + Profit\%)}{100}\)

= 5,000 × \(\frac{(100 + 25)}{100}\)

= 5,000 × \(\frac{125}{100}\)

= Rs. 6,250

Hence, The selling price is Rs. 6,250.

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