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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.)

Correct Answer: 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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