Question : Mr. Y purchased a flat for Rs. 9,25,000 and spent Rs. 35,000 for its renovation. If he sold the flat for Rs. 10,80,000 then his profit percent is:
Option 1: 15%
Option 2: 17.5%
Option 3: 20%
Option 4: 12.5%
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Correct Answer: 12.5%
Solution :
The total money spent on flat (Cost price) = 925000 + 35000 = Rs. 9,60,000
The selling price of flat = Rs. 10,80,000
Profit = 1080000 – 960000 = Rs. 1,20,000
Profit percent = $[\frac{\text{Profit}}{\text{Cost price}}]$ × 100
Profit percent = $\frac{120000}{960000}$ × 100 = 12.5%
Hence, the correct answer is 12.5%.
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