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A car mechanic purchased four old cars for Rs. 1 lakh. He spent a total 2 lakh in the maintenance and repairing of these four cars. What is the average sale price of the other three cars to get 50 % total profit if he has already sold one of the four cars at Rs.1.2 lakh?

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answer is A.

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Detailed Solution

Concept:
The total cost of the car is the Rs spent on the maintenance and repair of these four cars. 1 Lakh and Rs. It's 2 Lakh. Use the formula

to find the selling price of four cars. Where CP is the cost of four cars and P is the rate of return.
Total cost of 4 cars

Total S.P of 4 cars

S.P of 1 car

S.P of rest 3 cars

Average S.P of all the 3 cars

Hence, the correct answer is option 1) 1.1 lakhs

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