Question

A shopkeeper sells an item at a 20\% profit. If the cost price of the item is ₹800, what is the selling price?

• A. ₹900
• B. ₹960
• C. ₹1000
• D. ₹1200

Hint:

To calculate selling price with profit, use the formula: \[ \text{Selling Price} = \text{Cost Price} \times (1 + \frac{\text{Profit Percentage}}{100}) \]

Answer 1

The Correct Option is B

To solve this problem, we need to determine the selling price of an item when it is sold at a 20% profit. Let's go through this step-by-step:

1. Identify the Cost Price (C.P.) of the item:
   The cost price of the item is given as ₹800.
2. Understand the Profit Percentage:
   It is given that the item is sold at a 20% profit. This means the profit made on the cost price is 20% of the cost price.
3. Calculate the Profit Amount:
   The profit can be calculated using the formula: \text{Profit} = \left( \frac{\text{Profit Percentage}}{100} \right) \times \text{Cost Price}
   Substituting the given values: \text{Profit} = \left( \frac{20}{100} \right) \times 800 = 160
4. Calculate the Selling Price (S.P.):
   The selling price is calculated by adding the profit to the cost price: \text{Selling Price} = \text{Cost Price} + \text{Profit}
   Substituting the values we have: \text{Selling Price} = 800 + 160 = 960
5. Select the Correct Option:
   The calculated selling price is ₹960, which matches the given option that states ₹960.

Thus, the correct answer is ₹960.