item cost rupees 90 if 20% of its price is increased that its cost is rupees
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Original Price(OP) = 90
Cost after Increase = OP + 20% of OP
= 1(OP) + 0.2(OP)
= 1.2(OP)
= 1.2(90)
= 108
So, after the 20% increase, the item will cost Rs. 108
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