A dishonest milkman mixes milk to mineral water in the ratio of 5: 3. He sells the mixture at the cost price of milk and earns a profit of 20%. If the price of mineral water is Rs. 20 per litre, then the price of one litre milk is how much percentage more than that of one litre mineral water?
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50%
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60%
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75%
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80%
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None of these
D
Correct answer
Explanation
Let milk price be M and water price be W = Rs. 20/litre. Mixture ratio is 5:3. For every 8 litres of mixture, 5 litres are milk (cost 5M) and 3 litres are water (cost 3W = 60). Cost price of 8 litres = 5M + 60. Selling price of 8 litres = 8M (selling at milk price). Profit = 20%, so 8M = 1.2 × (5M + 60). Solving: 8M = 6M + 72, so 2M = 72, M = 36. Water price = 20. Difference = 36 - 20 = 16. Percentage more = (16/20) × 100 = 80%.