Multiple choice

By selling an item for Rs. 120, a shopkeeper makes a profit of 20%. What was the cost price of the item?

  1. 34

  2. 46

  3. 100

  4. 72

  5. 154
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Profit = 20%, so Selling Price = 1.2 * Cost Price. 120 = 1.2 * CP, so CP = 100.

AI explanation

Using the formula for cost price when the selling price and profit percent are known, CP = (SP * 100) / (100 + Profit%). Substituting the values gives CP = (120 * 100) / (100 + 20) = 12000 / 120. Therefore, the cost price of the item is Rs. 100.

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