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A bike is sold for Rs 48,000, and thus the seller makes aprofit of 20%. In order to gain a profit of 25%, at what price should he sellthe bike?Rs 50,000Rs 55,000Rs 60,000Rs 52,000

Question

A bike is sold for Rs 48,000, and thus the seller makes aprofit of 20%. In order to gain a profit of 25%, at what price should he sellthe bike?Rs 50,000Rs 55,000Rs 60,000Rs 52,000

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Solution

The selling price of the bike is Rs 48,000 and the profit made is 20%. This means the cost price of the bike is 100% and the selling price is 120% of the cost price.

Step 1: Let's first calculate the cost price of the bike. If 120% of cost price = Rs 48,000, then the cost price (100%) is (48,000 * 100) / 120 = Rs 40,000.

Step 2: Now, to gain a profit of 25%, the selling price should be 125% of the cost price. So, the new selling price is (125/100) * 40,000 = Rs 50,000.

So, in order to gain a profit of 25%, the bike should be sold for Rs 50,000.

This problem has been solved

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