Answer:
Rs 19.20
Step-by-step 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 + [tex]\frac{25}{100} a[/tex] = 24
1.25a = 24
a = [tex]\frac{24}{1.25} = 19.20[/tex]
So he should buy the pen at Rs 19.20
