Multiple choice

By selling a colour TV for Rs. 24,000, a trader gains 20%. Find the cost price of the TV.

  1. Rs. 20,000

  2. Rs. 21,000

  3. Rs. 22,000

  4. Rs. 18,000
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A Correct answer
Explanation

The cost price is calculated by dividing the selling price by (1 + gain percentage). Here, 24000 / 1.20 = 20000.

AI explanation

Use the cost price formula: Cost Price equals Selling Price divided by (1 + Profit Percentage divided by 100). Substitute the values to get Cost Price = 24000 divided by (1 + 0.20). This simplifies to 24000 divided by 1.20, which equals 20000. The cost price is Rs. 20000.

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