Question

Akhilesh bought a house for Rs. 9,50,00. Rs.50,000 was spent on colour. For earning a profit of 14.5 %, how much should the home sell for?
A. Rs.7,50,000
B. Rs.8,50,000
C. Rs.5,45,000
D. None of these

Answer 1

Hint: Firstly we need to calculate the total cost price of the house. Further using the profit percentage formula we will calculate the selling price of the house. The profit percent is given by $\dfrac{{\ Profit}}{{C.P}} \times 100$ and C.P is the total cost price and profit is the difference in selling price and cost price.

Complete step-by-step answer:
Given, the profit that Akhilesh makes on selling the house is 14.5%.
He bought the house for Rs. 9,50,000 and invested Rs. 50,000 for colouring.
Therefore, Total cost price = 9,50,000 + 50,000 = 10,00,000
Let the selling price be $x$.
Profit percent = $
  \dfrac{{\ Profit}}{{C.P}} \times 100 \\
   = \dfrac{{S.P - C.P}}{{C.P}} \times 100 \\
$
where S.P is selling price and C.P is cost price.
substituting the values in the above formula, we get
$
  \dfrac{{x - 10,00,000}}{{10,00,000}} \times 100 = 14.5 \\
   \Rightarrow \dfrac{{x - 10,00,000}}{{10,000}} = 14.5 \\
   \Rightarrow x - 10,00,000 = 1,45,000 \\
   \Rightarrow x = 11,45,000 \\
$
 Hence, The Selling Price is Rs.11,45,000

So, the correct answer is “Option D”.

Note: Important aspect to notice and keep in mind is that the Cost price is the actual price calculated of an item by adding all the expenses and the cost of items in order to establish what the goods actually cost. In the above question, the total cost incurred to Akhilesh is a sum of Rs. 9,50,000 and Rs. 50,000
Total cost price is 9,50,000 + 50,000 = 10,00,000
Rs.10,00,000, this is the amount at which profit is calculated.