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 25%?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e 2.73.
Cost Price (CP) = SP1 / (1 + P1/100)
CP = 20 / 1.10 = ₹18.18
New Selling Price for 25% profit = CP × (1 + 25/100)
SP2 = 18.18 × 1.25 = ₹22.73
Increase = SP2 - SP1 = 22.73 - 20 = ₹2.73