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 45%?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e 6.36.
Selling price with 10% profit = ₹20
If 10% profit gives ₹20, then:
Cost price = 20 ÷ 1.10 = ₹18.18
New selling price = 18.18 × 1.45 = ₹26.36
Increase in selling price = 26.36 - 20 = ₹6.36