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Find the cost price of a book, when it is sold for Rs. 48 and the gain is 20%?
  1. Rs. 60
  2. Rs. 30
  3. Rs. 40
  4. None of these
Explanation

To find the cost price (CP), use the formula:

CP = Selling Price (SP) / (1 + Gain %)

CP = 48 / (1 + 0.20)

CP = 48 / 1.20

CP = 40

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If an article is sold at a profit of RS 120, which represents 20% of the selling price, then what is the cost price of the article?
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