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 Penny Question from gaurav, a parent: In the following, which calculation is right to calculate the profit percent. if profit is 20%- 100*1.2 = 120 if profit is 20%- 100/0.8 = 125?

Gaurav,

You need to ask yourself "20% of what?"

If you purchase an item for $100 and you want your profit to be 20% of what you paid for it then you would charge your customer$100 * 1.2 = $120. If you purchase an item for$100 and you want your profit to be 20% of what your customer pays for it then you would charge your customer $100/0.8 =$125.

Penny

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