A trader sold an article for N150 and made a profit of 20%. What was the cost price of the article
Show workings
Let the cost price of the article be x.
Profit percentage = 20%
Profit = 20% of x = 0.2x
Selling price = Cost price + Profit
150 = x + 0.2x
150 = 1.2x
x = 150/1.2
Therefore, the cost price of the article was N125.
To find the cost price of the article, we need to work backwards from the selling price and the profit percentage.
Let's assume the cost price of the article is C.
The trader made a profit of 20%, which means the selling price is 120% (100% + 20%) of the cost price.
Selling price = N150 (given)
Selling price = Cost price + Profit
Now we can set up the equation:
N150 = C + (20/100)C
To simplify the equation, we can convert the percentage to a decimal:
N150 = C + (0.20)C
Simplifying further:
N150 = 1.20C
Now, divide both sides of the equation by 1.20:
N150 / 1.20 = C
C ≈ N125
Therefore, the cost price of the article was approximately N125.