Final answer:
The cost price of an item with a selling price of Rs. 1,680 and a profit of 12% is calculated by dividing the selling price by 1.12, which results in a cost price of Rs. 1,500.
Step-by-step explanation:
To find the cost price given the selling price (S.P.) and profit percentage, we can set up a simple equation. We know that the profit is the difference between the selling price and the cost price, and we can represent profit as a percentage of the cost price. Let's denote the cost price as 'CP' and the profit as 'P'. The problem states that the selling price is Rs. 1,680 and the profit is 12%. The profit can be calculated as 12% of the cost price, which means P = 0.12 × CP. Selling price is the sum of the cost price and the profit, so we can write the equation as S.P. = CP + P. Plugging in the given values and the expression for 'P', we have Rs. 1,680 = CP + (0.12 × CP). Combining like terms, we get 1.12 x CP = Rs. 1,680. Now we just need to solve for CP CP = Rs. 1,680 / 1.12 CP = Rs. 1,500 (after dividing)Therefore, the cost price of the item is Rs. 1,500.