A pen was purchased for 20. At what
price should it be sold to get a profit of
20%?
Answers
Ramesh buys a pen for Rs 20 and sells it at 20% profit. For what price should he buy it so that he can make 25% profit by selling for the same selling price?
Step-by-step explanation:
Use the formula: Profit=[Selling Price - Cost Price]/Cost Price]
0.20 = [Selling Price - 20]/20
0.20=[SP-20]/20
0.20(20)=SP-20
4=SP-20
4+20=SP
SP= 24 selling price for 20% Profit. Ramesh bought the pen at Rs 20 and sold it at Rs 24 to make 20% profit because 1.20x20=24.
Next problem is using the same selling price of Rs 24, how much should Ramesh buy it to make 25% profit. In other words, how much is the cost price of the pen so that when Ramesh sells it at Rs 24, he makes 25% profit?
0.25=[24-CP]/CP
0.25CP=24-CP
0.25CP+CP=24
1.25CP=24
CP=24/1.25= 19.20 cost price of the pen. Ramesh should buy the pen at Rs 19.20 and sell it at Rs 24 to make 25% profit because 1.25x19.20=24
Check using formula:
SP=24, CP=20, Profit=20% or 0.20
Profit =(SP-CP)/CP=(24–20)/20=4/20=0.20 or 20% OK
SP=24, CP=19.20, Profit =25% or 0.25
Profit =(24–19.20)/19.20=4.80/19.20=0.25 or 25%OK
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Answer:
the profit of shopkeeper by selling pen is 25 %