Multiple choice

A milkman buys milk at Rs. $25$ per litre and adds $\cfrac{1}{4}$ of water to it and sells the mixture at Rs. $25$ per litre. His gain (in %) is:

  1. $25$
  2. $20$
  3. $30$
  4. $15$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

If he buys 1 litre for 25 and adds 1/4 litre of water (costing 0), he has 1.25 litres of mixture. Selling 1.25 litres at 25 per litre yields 31.25. Profit is 31.25 - 25 = 6.25. Profit percentage is (6.25 / 25) * 100 = 25%.

AI explanation

Assume the milkman buys 1 liter of milk for Rs. 25, and since he adds 1/4 liter of water, the total volume becomes 1.25 liters. The total cost remains Rs. 25, and he sells the entire 1.25 liters at Rs. 25 per liter, which brings in Rs. 31.25. The profit is Rs. 31.25 minus Rs. 25, equaling Rs. 6.25, and dividing this by the cost of Rs. 25 and multiplying by 100 gives a 25 percent gain.

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