If the profit is 20%, then what will be the ratio of cost price to selling price respectively?

Options

A. None of these
B. `5:6`
C. `2:5`
D. `3:4`

Answer

To find the ratio of cost price (CP) to selling price (SP) when the profit is 20%, we can follow these steps:

### Step-by-Step Solution:

1. **Assume a Cost Price (CP)**:
Let's assume the cost price (CP) is ₹100.

2. **Calculate the Profit**:
Given that the profit is 20%, we can calculate the profit amount.
Profit = 20% of CP = 20% of ₹100 = (20/100) * 100 = ₹20.

3. **Calculate the Selling Price (SP)**:
The selling price is calculated by adding the profit to the cost price.
Selling Price (SP) = CP + Profit = ₹100 + ₹20 = ₹120.

4. **Find the Ratio of Cost Price to Selling Price**:
Now, we need to find the ratio of CP to SP.
Ratio (CP:SP) = CP : SP = ₹100 : ₹120.

5. **Simplify the Ratio**:
To simplify the ratio, we can divide both terms by 20.
₹100 ÷ 20 = 5, and ₹120 ÷ 20 = 6.
Therefore, the simplified ratio is 5:6.

### Final Answer:
The ratio of cost price to selling price is **5:6**.

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