Question

After spending Rs. 75,000 for remodeling a house, Sania sold the house at a profit of 20%. If the selling price was Rs. 36,00,000; then, how much did she spent to buy it?
1. Rs. 29,25,000
2. Rs. 26,53,000
3. Rs. 28,75,000
4. Rs. 39,25,000

Answer 1

Correct Answer - Option 1 : Rs. 29,25,000

Given:

S.P = Rs. 36,00,000

Remodeling Cost = Rs. 75,000

Profit % = 20%

Formula used:

Profit% = Profit/Cost price × 100

Calculation:

Let the cost price of house be ‘P’.

⇒ P × 120% = 36,00,000

⇒ P = (36,00,000 × 100)/120

⇒ P = 30,00,000

Cost price of house = P – Remodeling cost

⇒ 30,00,000 – 75,000

⇒ Rs. 29,25,000

∴ The cost of house is Rs. 29,25,000.