A shopkkeper sells an item at Rs. 68 and incurs a loss of 15%. At what price should he sell it to gain 20%?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Rs. 96
Given:
Selling price = 68
Profit = 20%
Loss = 15%
Formula used:
Final Selling price = [Selling price/(1 - loss%)] × (1 + Profit%) ---- (1)
Calculations:
Using equation (1), we get
⇒ Final selling price = [(68/1 - 0.15)] × (1 + 0.2)
⇒ 80 × 1.2 = Rs 96