Answer:
Rs 19.20
Explanation:
Buying price = Rs 20
Profit = 20% = 0.20 × 20 = Rs 4
Selling price = buying price + profit = Rs 20 + Rs 4 = Rs 24
He wants to make a 25% profit.
Let's say he should buy the pen at Rs 'a' in order to make that amount of profit.
∴ a +
= 24
1.25a = 24
a =
![(24)/(1.25) = 19.20](https://img.qammunity.org/2021/formulas/mathematics/high-school/7kliauvl2s2yg6itwnr0ljldw2vqhii1st.png)
So he should buy the pen at Rs 19.20