Question

Charu bought toffees at the rate of 5 per rupee.  If Charu earned profits equal to 20%, then find the selling price at which Charu must sell the 5 toffees.

1. Rs. 1.20
2. Rs. 1.50
3. Rs. 0.80
4. Rs. 2.00

Answer 1

Correct Answer - Option 1 : Rs. 1.20

Given:

Charu bought toffees at the rate of 5 per rupee. 

Charu earned profits equal to 20%.

Concepts used:

Profit % = (Profits/C.P.) × 100

Calculation:

Charu bought toffees at the rate of 5 per rupee. 

⇒ C.P. of 5 toffees = Re. 1

⇒ C.P. of 1 toffee = Re. 1/5

Profits = 20%

⇒ 20 = {(S.P. – (1/5)}/(1/5) × 100

⇒ S.P. of 1 toffee = Re. 6/25

⇒ S.P. of 5 toffees = Rs. 5 × 6/25 = Rs. 1.20

∴ Charu must sell 5 toffees for Rs. 1.20 to make profits of 20%.