Correct Answer - Option 3 : Rs. 14.40

**Given :**

Sell price of a toy = 10.80 Rs.

Loss = 10%

**Formula used :**

Cost price = sell price × 100/(100 - loss)

**Calculation :**

C.P = 10.80 × 100/90 = 12

To earn a profit of 20% the selling price of the toy = 12 × 120/100 = 14.40

**∴ To earn a profit of 20 % the selling price of the toy will be Rs. 14.40.**