A vendor sold 16 clips for a rupee and got 25% profit. How many clips did he buy for a rupee?

Correct option is A

Given:

The vendor sold 16 clips for 1 rupee and made a 25% profit.

Concept Used:

​$$\text{Selling Price} = \text{Cost Price} \times (1 + \text{Profit Percentage})$$​​

Formula Used:
Let the cost price for 1 clip be C.
Total cost price for 16 clips is 16C.
The vendor sold 16 clips for 1 rupee, so the selling price of 16 clips is 1 rupee.

The profit is 25%, so we can write:

​$$1 = 16C \times (1 + 0.25)$$​

​$$1 = 16C \times 1.25$$​

​$$C = \frac{1}{20}$$​

This means the cost price of 1 clip is $$\frac{1}{20}$$​ rupees.

Now, to find how many clips the vendor bought for 1 rupee, we use:

Number of clips bought for 1 rupee $$= \frac{1}{C} = \frac{1}{\frac{1}{20}} = 20$$​
The vendor bought 20 clips for 1 rupee.