Question & Answer
QUESTION

Mike bought an old cycle for 500 rupees and spent 100 rupees on its repair. He sold that cycle for 1200 rupees. Calculate his profit percent.
A. $12.22\% $
B. $32.23\% $
C. $22.22\% $
D. $100\% $

ANSWER Verified Verified
Hint: In order to find the profit percentage, first we will calculate the gain by subtracting cost price from selling price and dividing it by cost price. To make this as percent we will multiply it by 100.

Complete step-by-step answer:
The given statement is “Mike bought an old cycle for 500 rupees and spent 100 rupees on its repair. He sold that cycle for 1200 rupees”
Here, price paid for buying the cycle = cost price= Rs. 500
Amount spent on repair = Rs 100
Therefore total cost price of the cycle = cost price $ = Rs.500 + Rs.100 = Rs.600$
And selling price = Rs. 1200
We know that if selling price is represented by x and cost price is represented by y then profit will be given as $x - y$
And gain percentage will be given as
${\text{gain percentage = }}\dfrac{{{\text{gain}}}}{{{\text{cost price}}}} \times 100{\text{ or }}\dfrac{{x - y}}{y} \times 100$
Substituting the corresponding values of gain and cost price, we get
$
  {\text{gain percentage = }}\dfrac{{x - y}}{y} \times 100 \\
   = \dfrac{{1200 - 600}}{{600}} \times 100 \\
   = 100\% \\
  $
Hence, his profit is $100\% $ and option “D” is the correct answer.

Note: In order to solve problems related to profit or loss remember the formula of profit and loss. You must remember the basic terms like marked price , selling price, cost price, gain or profit are the same and loss. The problems are statement based so read the statement carefully and derive the conditions and put them in the formula to get the answer. Most of the questions are formula based so remember the formula.