Ram purchased a watch at a cost of $(\frac{9}{10})^{th}$ of the original cost and sold at 8% more than the original cost. His profit/loss is

20% profit

The correct answer is Option (1) → 20% profit

Given:

• Cost Price (CP) of watch for Ram = $\frac{9}{10}$​ of original cost
• Selling Price (SP) = original cost + 8% of original cost = $1.08 \times \text{original cost}$

Let Original Cost = 100 units

Step 1: Calculate CP and SP

$\text{CP} = \frac{9}{10} \times 100 = 90$

$\text{SP} = 1.08 \times 100 = 108$

Step 2: Calculate Profit%

$\text{Profit} = SP - CP = 108 - 90 = 18$

$\text{Profit}\% = \frac{18}{90} \times 100 = 20\%$