Question

An article costing a certain amount was sold at a profit of 25%. By what factor must the cost price be multiplied to give the selling price?

A. 1.25
B. 1.20
C. 1.15
D. 1.30

Answer 1

To determine the selling price with a 25% profit, the cost price must be multiplied by the factor of 1.25.

Step-by-step explanation:

The question involves determining the factor by which the cost price must be multiplied to find the selling price when a profit of 25% is made. To find this factor, we add the profit percentage to 100% (which represents the original cost price), resulting in 125% or 1.25 as a decimal. Therefore, the cost price must be multiplied by 1.25 to obtain the selling price.