A shopkeeper bought a watch for Rs. 1200. At what price should he sell the watch to earn a profit of 25% ?

Options

A. Rs. 1550
B. Rs. 1500
C. Rs. 1450
D. Rs. 1400

Answer

To find the selling price (SP) at which the shopkeeper should sell the watch to earn a profit of 25%, we can follow these steps:

### Step 1: Identify the Cost Price (CP)
The cost price of the watch is given as Rs. 1200.

### Step 2: Calculate the Profit
To calculate the profit, we need to find 25% of the cost price.

\[ \text{Profit} = 25\% \text{ of CP} = \frac{25}{100} \times 1200 \]

### Step 3: Simplify the Profit Calculation
Calculating the profit:

\[ \text{Profit} = 0.25 \times 1200 = 300 \]

### Step 4: Calculate the Selling Price (SP)
Now, we can find the selling price by adding the profit to the cost price.

\[ \text{SP} = \text{CP} + \text{Profit} = 1200 + 300 \]

### Step 5: Final Calculation
Calculating the selling price:

\[ \text{SP} = 1500 \]

Thus, the shopkeeper should sell the watch for Rs. 1500 to earn a profit of 25%.

### Final Answer
The selling price (SP) should be Rs. 1500.

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