Kamal bought a house in Sushant city, whose sale price was ₹ 8 lakh. He availed `20%` discount as an early bird offer and then `10%` discount due to cash payment. After that he spent `10%` of the cost price in interior decoration and lawn of the house. At what price should he sell the house to earn a profit of`25%`

Options

A. ₹ 9 lakh
B. ₹ 7.99 lakh
C. ₹ 7.92 lakh
D. none of these

Answer

To solve the problem step by step, we will calculate the effective cost price of the house after applying the discounts and additional expenses, and then determine the selling price required to achieve a 25% profit.

### Step 1: Calculate the effective sale price after discounts

1. **Original Sale Price**: ₹ 8,00,000
2. **First Discount (20%)**:
- Discount Amount = 20% of ₹ 8,00,000 = (20/100) * 8,00,000 = ₹ 1,60,000
- Sale Price after First Discount = ₹ 8,00,000 - ₹ 1,60,000 = ₹ 6,40,000

3. **Second Discount (10%)**:
- Discount Amount = 10% of ₹ 6,40,000 = (10/100) * 6,40,000 = ₹ 64,000
- Sale Price after Second Discount = ₹ 6,40,000 - ₹ 64,000 = ₹ 5,76,000

### Step 2: Calculate the cost price after additional expenses

4. **Interior Decoration and Lawn Expenses (10% of Cost Price)**:
- Additional Expenses = 10% of ₹ 5,76,000 = (10/100) * 5,76,000 = ₹ 57,600
- Total Cost Price = ₹ 5,76,000 + ₹ 57,600 = ₹ 6,33,600

### Step 3: Calculate the selling price for a 25% profit

5. **Desired Profit (25%)**:
- Profit Amount = 25% of ₹ 6,33,600 = (25/100) * 6,33,600 = ₹ 1,58,400
- Selling Price = Total Cost Price + Profit Amount = ₹ 6,33,600 + ₹ 1,58,400 = ₹ 7,92,000

### Conclusion

Kamal should sell the house for ₹ 7,92,000 to earn a profit of 25%.

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