By selling a car for Rs 72000, a person made a profit of `20%.` Then , the cost price of the car is

Options

A. Rs 60000
B. Rs 70000
C. Rs 80000
D. Rs 90000

Answer

To find the cost price of the car given that it was sold for Rs. 72,000 with a profit of 20%, we can follow these steps:

### Step 1: Understand the relationship between Selling Price, Cost Price, and Profit
The relationship can be expressed as:
\[ \text{Selling Price} = \text{Cost Price} + \text{Profit} \]

### Step 2: Express Profit in terms of Cost Price
Since the profit is given as 20% of the cost price, we can write:
\[ \text{Profit} = 20\% \text{ of Cost Price} = \frac{20}{100} \times \text{Cost Price} = \frac{1}{5} \times \text{Cost Price} \]

### Step 3: Substitute the values into the equation
Let the cost price be \( X \). Then, we can substitute the values into the equation:
\[ \text{Selling Price} = X + \frac{1}{5}X \]
This can be simplified to:
\[ \text{Selling Price} = X + 0.2X = 1.2X \]

### Step 4: Set up the equation with the Selling Price
Given that the selling price is Rs. 72,000, we can write:
\[ 1.2X = 72,000 \]

### Step 5: Solve for Cost Price
To find \( X \), divide both sides by 1.2:
\[ X = \frac{72,000}{1.2} \]

### Step 6: Calculate the Cost Price
Now, perform the division:
\[ X = 72,000 \div 1.2 = 60,000 \]

### Conclusion
The cost price of the car is Rs. 60,000.