Question : By selling a water heater for INR 320, the shopkeeper incurs a loss of 20%. If he wants to earn a profit of 20%, at what price should he sell the water heater?
Option 1: INR 480
Option 2: INR 105
Option 3: INR 400
Option 4: INR 100
Correct Answer: INR 480
Solution :
Given: By selling a water heater for INR 320, the shopkeeper incurs a loss of 20%.
Here cost price is denoted by CP, selling price is denoted by SP.
CP =
SP =
According to the questions,
⇒
For SP,
⇒
Hence, the correct answer is INR 480.