A shopkeeper sold an item for ₹495 with 10% profit. In order to earn 16% profit, by how much (in ₹) should he increased the selling price?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 27.
SP = CP × (1 + Profit%/100)
495 = CP × (1 + 10/100) = CP × 1.10
⇒ CP = 495/1.10 = ₹450
SP2 = 450 × (1 + 16/100) = 450 × 1.16 = ₹522
⇒ 522 − 495 = ₹27