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An article is sold at 5% profit. The rat...

An article is sold at 5% profit. The ratio of selling price and cost price will be

A

`1:5`

B

`20:21`

C

`21:20`

D

`5:1`

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The correct Answer is:
To find the ratio of Selling Price (SP) to Cost Price (CP) when an article is sold at a 5% profit, we can follow these steps: ### Step-by-Step Solution: 1. **Understand the Definitions**: - Cost Price (CP): The price at which an article is purchased. - Selling Price (SP): The price at which an article is sold. - Profit Percentage: The percentage of profit made on the Cost Price. 2. **Use the Profit Formula**: - The formula to calculate Selling Price when profit percentage is known is: \[ SP = CP \times \left(1 + \frac{\text{Profit Percentage}}{100}\right) \] - In this case, the profit percentage is 5%. 3. **Substitute the Profit Percentage**: - Substitute the profit percentage into the formula: \[ SP = CP \times \left(1 + \frac{5}{100}\right) \] - Simplifying this gives: \[ SP = CP \times \left(1 + 0.05\right) = CP \times 1.05 \] 4. **Find the Ratio of SP to CP**: - To find the ratio of Selling Price to Cost Price, we can express it as: \[ \frac{SP}{CP} = \frac{CP \times 1.05}{CP} \] - The CP cancels out: \[ \frac{SP}{CP} = 1.05 \] 5. **Convert to Fraction**: - The ratio 1.05 can be expressed as a fraction: \[ 1.05 = \frac{105}{100} = \frac{21}{20} \] 6. **Final Ratio**: - Therefore, the ratio of Selling Price to Cost Price is: \[ SP : CP = 21 : 20 \] ### Conclusion: The ratio of Selling Price to Cost Price when an article is sold at a 5% profit is **21:20**.
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