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A trader buys jowar at Rs.30 per kg. 20% of the grain gets wasted. He plans to sell the remaining grain so that he makes 40% overall profit. At what price (in Rs. per kg) should he sell the grain?Options4852.547.550

Question

A trader buys jowar at Rs.30 per kg. 20% of the grain gets wasted. He plans to sell the remaining grain so that he makes 40% overall profit. At what price (in Rs. per kg) should he sell the grain?Options4852.547.550

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Solution

The trader buys jowar at Rs.30 per kg. 20% of the grain gets wasted. So, the effective cost of the grain that is left is higher.

Step 1: Calculate the effective cost of the grain If 20% gets wasted, then 80% is left. So, the cost of 1 kg of usable grain is Rs.30/0.8 = Rs.37.5

Step 2: Calculate the selling price for 40% profit The trader wants to make a 40% profit on the effective cost. So, the selling price should be 140% of the effective cost.

So, the selling price = 140/100 * 37.5 = Rs.52.5

Therefore, the trader should sell the grain at Rs.52.5 per kg to make a 40% overall profit.

This problem has been solved

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