A shopkeeper buys an item for ₹80. If the shopkeeper wants to make a profit of 20% on the cost price, what should be the selling price of the item?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹96.
Cost Price (CP) = ₹80
Profit = 20% of CP
Profit = 20% of 80 = (20/100) × 80 = ₹16
Selling Price (SP) = CP + Profit = 80 + 16 = ₹96