Sita makes a profit of 15% by selling a watch for ₹ 1656. At what price should the watch be sold to make 25% profit?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → ₹ 1800
Profit is always a percentage of the cost price. So first find the cost price from the 15% profit, then add 25% to it.
Selling price at 15% profit \(=115\%\) of the cost price \(=1656\)
Cost price \(\displaystyle =1656\times\frac{100}{115}=\) ₹1440
Selling price for 25% profit \(\displaystyle =1440\times\frac{125}{100}=\) ₹1800