Question

Anbarasan purchased a house for 17,75,000 and spent 1,25,000 on its interior decoration. He sold the house to make a profit of 20 %. Find the S.P of the house.

Answer 1

Hint: We will first find the total cost price for purchasing the house and decorating the same. Then we will find the selling price or the S.P of the house on making a profit percentage of 20 %, by using the formula $S.P=C.P+C.P\times profit\%$ and we will get the desired answer.

Complete step by step solution:
We have been given that Anbarasan purchased a house for 17,75,000 and spent 1,25,000 on its interior decoration, and then he sold the house to make a profit of 20 % and we have to find the S.P or the selling price of the house. We will first find the total C.P or the cost price of the house. The total cost price will be = cost price of the house + the cost price for the interior decoration. So, we can find the C.P as,
$\begin{align}
  & C.P=Rs.17,75,000+Rs.1,25,000 \\
 & \Rightarrow C.P=Rs.19,00,000 \\
\end{align}$
We know that he makes a profit of 20 % on selling the house. So, to find the S.P, we will us the formula, $S.P=C.P+C.P\times profit\%$. So, we will now substitute the value in this formula and get the selling price as,
$\begin{align}
  & S.P=C.P+C.P\times profit\% \\
 & \Rightarrow S.P=C.P+C.P\times \dfrac{20}{100} \\
\end{align}$
We will take the LCM and get,
$\begin{align}
  & S.P=\dfrac{100C.P+20C.P}{100} \\
 & \Rightarrow S.P=C.P\times \dfrac{120}{100} \\
 & \Rightarrow S.P=1900000\times \dfrac{120}{100} \\
 & \Rightarrow S.P=Rs.22,80,0000 \\
\end{align}$
Hence, he sold the house for Rs. 22,80,000 to make a profit of 20 %.

Note: The students can make a mistake in the formula and may write it as, $C.P=S.P+S.P\times profit\%$, which would be totally wrong. There is an alternate method to solve this question too. We have the C.P of the house as Rs. 19,00,000. We can find the profit amount he made on the house by finding 20 % of C.P, which is $20\times \dfrac{1900000}{100}=Rs.3,80,000$. Now, as it is profit, the selling price of the house will be the summation of the C.P and the profit amount, which is $1900000+380000=Rs.22,80,000$.