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.