By selling an article for ₹20, a dealer makes a profit of 10%. By how much should he increase his selling price (in ₹, rounded off to two decimal place) so as to make a profit of 20%?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e 1.82.
SP₁ = CP × (1 + Profit%/100)
⇒ 20 = CP × (1 + 10/100) = CP × 1.10
⇒ CP = 20/1.10 =
SP2 = CP × 1.20 = × 1.20 =
Increase = SP2 − SP1 = 21.82 − 20 = ₹1.82