The cost price of an article is Rs. 2800. Profit as a percentage of selling price is 20 percent. What is the actual profit (in Rs.)?

Solution (By Examveda Team)

Here, cost price = Rs. 2800, Profit % as selling price = 20
As, according to the question,
Profit as a percentage of selling price $$ = \frac{{{\text{Profit}}}}{{{\text{SP}}}} \times 100$$
$$\eqalign{ & \Rightarrow 20 = \frac{{{\text{Profit}}}}{{{\text{SP}}}} \times 100 \cr & \Rightarrow 20 = \frac{{{\text{SP}} - 2800}}{{{\text{SP}}}} \times 100\,\,\,\,\,\left[ {{\text{As Profit}} = {\text{SP}} - {\text{CP}}} \right] \cr & \Rightarrow 20{\text{SP}} = 100{\text{SP}}\, - 280000 \cr & \Rightarrow 280000 = 80{\text{SP}} \cr & \Rightarrow {\text{SP}} = {\text{Rs}}{\text{. }}3500 \cr} $$
Now,
Actual profit = (SP - CP) = Rs. (3500 - 2800) = Rs. 700
Hence, the actual profit is Rs. 700