Final answer:
The cost price of the book is Gh40.00.
Step-by-step explanation:
To find the cost price of the book, we need to first understand what the term 'profit' means. Profit is the amount of money that is earned after deducting the cost price from the selling price. In this case, we are told that the book was sold for Gh48.00 at a profit of 20%. So, the selling price is Gh48.00 and the profit is 20% of the cost price.
Let's use the formula to calculate the cost price:
Cost Price = Selling Price - Profit
Substituting the given values into the formula, we get:
Cost Price = Gh48.00 - (20% * Cost Price)
To solve for Cost Price, we simplify the equation:
Cost Price = Gh48.00 - (0.20 * Cost Price)
Cost Price + 0.20 * Cost Price = Gh48.00
1.20 * Cost Price = Gh48.00
To isolate Cost Price, we divide both sides of the equation by 1.20:
Cost Price = Gh48.00 / 1.20
Calculating the division, we find:
Cost Price = Gh40.00
Therefore, the cost price of the book is Gh40.00.