An article was sold at ₹600, making a profit of 20%. The cost price of the article was

Correct option is C

Given:

Selling Price (SP) = ₹600

Profit = 20%

Find the Cost Price (CP).

Formula Used:

SP = CP$$\left(1+\frac{\text{Profit\%}}{100}\right)$$​​

Solution:

​$$600 = \text{CP}\left(1+\frac{20}{100}\right) \\ \ \\600 = 1.2 \times \text{CP}\\ \ \\CP = \frac{600}{1.2} = ₹500$$​​

Alternate Solution (Exam Trick):

If 20% profit, then

CP : SP = 100 : 120

CP = $$600 \times \frac{100}{120}$$​ = ₹500