[amp_mcq option1=”Rs. 1,250″ option2=”Rs. 4,000″ option3=”Rs. 1,000″ option4=”None of the above” correct=”option1″]
The correct answer is A. Rs. 1,250.
Profit is the difference between the selling price and the cost price. If the profit is 25% of the cost price, then the profit is equal to 25% of the cost price multiplied by the selling price. In this case, the selling price is Rs. 5,000, so the profit is equal to 25% of Rs. 5,000, which is Rs. 1,250.
Option B is incorrect because it is the selling price, not the profit.
Option C is incorrect because it is the cost price, not the profit.
Option D is incorrect because it is not one of the possible answers.