Question

By selling a car for ₹72,000, a person made a profit of 20%. Then the cost price of the car is

• A. ₹90,000
• B. ₹60,000
• C. ₹80,000
• D. ₹70,000

Hint:

To calculate cost price from selling price and profit percentage, divide the selling price by \(1 + \frac{\text{Profit Percentage}}{100}\).

Answer 1

The Correct Option is C

Let the cost price of the car be \(C\). According to the problem, the selling price is ₹72,000, and the profit is 20%. The selling price is given by: \[ \text{Selling Price} = \text{Cost Price} + 20% \text{ of Cost Price} \] \[ 72,000 = C + 0.20C = 1.20C \] Solving for \(C\): \[ C = \frac{72,000}{1.20} = 60,000 \] Thus, the cost price of the car is ₹80,000.