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
Answer & explanation
Correct answer: option 1
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%
$\text{Profit} = SP - CP = 108 - 90 = 18$
$\text{Profit}\% = \frac{18}{90} \times 100 = 20\%$