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Arun is a cashew merchant in Telangana. He has cashews in sealed wooden boxes of 10kg each. The price of the cashew increases by Rs.20 per kg for every year, but at the same time, 10% of the cashews are eaten by rodents every year. If the price of a 1 kg of fresh cashew is Rs.120, what is the change in his profits if he sells a sealed box after one year of storage, rather than selling it fresh ? (In Rs.)

A) Rs. 60	B) Rs. 54
C) Rs. 80	D) Rs. 75

Answer & Explanation Answer: A) Rs. 60

Explanation:

Price of 1kg fresh cashew = Rs.120
Therefore, price of 10kg = Rs.120 x 10 = Rs.1200

10% of 10kg which eaten by rodents = 10 x 10/100 = 1kg.

So, End of Year he had 10kg - 1kg = 9kg

So, he sells that 9kg with Rs.20 per kg profit = 9 x 140 = 1260.

He buy 10kg wooden box with cashew for Rs.1200 and sell that for Rs. 1260

So, profit = 1260 - 1200 = Rs.60 more money he get.

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Filed Under: Profit and Loss
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A) leave it there as it was and walk away	B) remove the stamps and destroy the envelope.
C) open the envelope, find out who has dropped it by mistake, and send it to him if possible.	D) post it at the nearest letter box.

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