A person bought a watch for $500 and sold it for $600. What is the percentage pr

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Question: A person bought a watch for $500 and sold it for $600. What is the percentage profit?

Options:

Correct Answer: 25%

Solution:

Profit = Selling Price - Cost Price = 600 - 500 = $100. Percentage Profit = (Profit / Cost Price) × 100 = (100 / 500) × 100 = 20%.

A person bought a watch for $500 and sold it for $600. What is the percentage profit?

A person bought a watch for $500 and sold it for $600. What is the percentage profit?

Step 1: Identify the cost price of the watch, which is $500.
Step 2: Identify the selling price of the watch, which is $600.
Step 3: Calculate the profit by subtracting the cost price from the selling price: $600 - $500 = $100.
Step 4: To find the percentage profit, divide the profit by the cost price: $100 / $500.
Step 5: Multiply the result from Step 4 by 100 to convert it to a percentage: (100 / 500) × 100.
Step 6: Calculate the final percentage profit, which is 20%.

Profit Calculation – Understanding how to calculate profit by subtracting the cost price from the selling price.
Percentage Calculation – Knowing how to express profit as a percentage of the cost price.