Cost price is 96% of selling price — Aptitude Question
Cost price is 96% of selling price: If the cost price is 96% of the selling price, what is the profit percent? Answer and worked solution on CodeKairo.
- Topic: Profit & Loss
- Section: Quantitative Aptitude
- Difficulty: Medium
- Time target: 60 seconds
Question
If the cost price is 96% of the selling price, what is the profit percent?
Options
- 4%
- 4.17%
- 5%
- 6%
Show the answer and the worked solution
Correct answer: B. 4.17%
Worked solution
- Let SP = 100, so CP = 96.
- Profit = 4 on a cost of 96 = 4/96 × 100 = 4.17%.
Answer: 4.17%.
The idea
The answer is slightly above 4% precisely because the cost is the smaller base. Reading 4% straight off is the intended mistake.
Shortcut. Profit 4 on a cost of 96 is 1/24 ≈ 4.17%. Since the base is under 100, the answer must sit just above 4% — only 4.17% does.
Common trap. 4% — reading the 4-point gap as the percentage, i.e. measuring profit on the selling price of 100 instead of the cost of 96.