Question

Rahul bought a mobile for 500 and sold it for 625. Find the percentage of profit earned by Rahul.

Answer 1

Hint: To solve this question first we need to see or observe what is the Cost Price and the selling price, and we know $ {\text{Gain}} = {\text{SP}} - {\text{CP}} $ , after this we can proceed accordingly.

Complete step-by-step answer:
Given, Rahul bought a mobile for 500 and he sold the mobile at 625.
The amount at which Rahul bought the mobile becomes Cost Price(CP) which will be equal to 500. The amount at which Rahul sold the mobile becomes Selling Price(SP) which will be equal to 625. We know that gain or profit is always equal to the difference between Selling Price and Cost Price.
So,
 $
  {\text{Gain}} = {\text{SP}} - {\text{CP}} \\
  {\text{Gain}} = 625 - 500 \\
  {\text{Gain}} = 125 \;
  $
We also know that percentage of gain or percent of profit is given by,
 $ {\text{Profit}}\,\,{\text{percentage}} = \dfrac{{{\text{Gain}}}}{{{\text{CP}}}} \times 100\% $
Now, substitute 125 for Gain and 500 for CP and calculate the Profit percentage.
 $
  {\text{Profit}}\,\,{\text{percentage}} = \dfrac{{{\text{Gain}}}}{{{\text{CP}}}} \times 100\% \\
   = \dfrac{{125}}{{500}} \times 100\% \\
   = \dfrac{1}{4} \times 100\% \\
   = 25\% \;
  $
Therefore, Rahul gets a profit of $ 25\% $ , on selling the mobile of 500 at 625.
So, the correct answer is “ $ 25\% $ ”.

Note: Profit in Math’s is taken into account because of the gain quantity from any endeavor. Whenever a merchant sells a product, his motive is to achieve some benefit for the customer within the name of profit. Once he sells the merchandise quite its value worth, he gets the profit on that; however, if he has got to sell it for less than its value worth, he has suffered the loss. The construct of profit and loss is largely outlined in terms of business.