If profit is 25% of cost price and sales is Rs. 5,000 then what is amount of profit?

Rs. 1,250
Rs. 4,000
Rs. 1,000
None of the above

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.

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