The difference between the cost price and the selling price of an article is ₹240. If the profit is 20%, then the selling price is:
Answer & explanation
Correct answer: option 3
Selling price = Cost price + Profit
Let Cost Price = CP
Profit = 20%
SP = \(\frac{ 120}{100}\)CP
= \(\frac{ 6}{5}\)CP
\(\frac{ 6}{5}\)CP - CP = 240
\(\frac{ 6CP - 5CP}{5}\) = 240
CP = 1200
Selling price = 1200 + 240
= 1440
The correct answer is Option (3) → ₹1440