Question

Karan sold his wrist watch at Rs. 4500 and there is a gain of Rs. 500. At what price he should sell to gain 20%.
1. Rs. 4000
2. Rs. 4800
3. Rs. 4600
4. Rs. 5400

Answer 1

Correct Answer - Option 2 : Rs. 4800

Given:

Selling price = Rs. 4500

Gain = Rs. 500

Formula used:

Profit = selling price – cost price

Calculation:

Cost price = Rs.(4500 – 500)

⇒ Rs. 4000

Gain = 20% of 4000

⇒ Rs. 800

Selling price = Rs. 4000 + Rs. 800

⇒ Rs. 4800

So, selling price should be Rs. 4800 to gain 20%