Question 68

The selling price of a pen is ₹660. If the profit is 20%, then what is the nominal profit earned on the sale of the pen?

Solution

Let's assume the cost price of a pen is '100y'.

If the profit is 20%.

Profit on selling that pen = 100y of 20%

= $$100y\times\frac{20}{100}$$

= 20y

The selling price of a pen is ₹660.

selling price of a pen = (100y+20y) = 660

120y = 660

y = 5.5

Nominal profit earned on the sale of the pen = 20y

= $$20\times5.5$$

= ₹110

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