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    A shopkeeper calculates his profit per cent on the selling price and his profit is 6.25%. Find his actual profit percentage.
    Question

    A shopkeeper calculates his profit per cent on the selling price and his profit is 6.25%. Find his actual profit percentage.

    A.

    7 1/7 %

    B.

    10%

    C.

    8%

    D.

    6 2/3%

    Correct option is D

    Given:
    Profit percentage calculated on the Selling Price = 6.25%
    Formula Used:
    Cost Price = Selling Price - Profit
    Actual Profit Percentage = ProfitCostPrice \frac{Profit}{Cost Price}​ × 100
    Solution:
    The profit percentage on the Selling Price is given as 6.25%.
    We can convert this percentage into a fraction for easier calculation.
    6.25%=1166.25 \% = \frac{1}{16}​​
    This fractional value implies that if the Selling Price is 16 units, the Profit earned is 1 unit.
    Now, we determine the Cost Price.
    CP = SP - Profit
    CP = 16 - 1 = 15
    Actual profit percentage is always calculated based on the Cost Price.
    Actual Profit % = 115×100\frac{1}{15} × 100​​ =203= \frac{20}{3}​​

    Actual Profit % = 623%6 \frac{2}{3} \%​​
    Final Answer
    So the correct answer is (d)

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