A dealer sold a camera for Rs.1080 gaining $\frac{1}{8}$ of its cost price. Find the cost price of the camera, and the gain percent earned by the dealer.

Given :

A dealer sold a camera for Rs 1080 gaining $\frac{1}{8}$ of its cost price.

To do :

We have to find the cost price of the camera and the gain %.

Solution :

Selling price $= Rs. 1080$

Let the cost price be Rs.$ x$.

Gain $= Rs. \frac{1}{8}(x)$

We know that,

$SP = CP + Profit$

Therefore,

$1080 = x+\frac{1}{8}(x)$

$1080 = \frac{(8+1)}{8} x$

$1080 = \frac{9}{8} x$

$x = 1080(\frac{8}{9})$

$x = 120(8)$

$x = 960$

$Gain = Rs.\frac{1}{8}(960) = Rs. 120$

Therefore, the Cost price of the camera is Rs. 960.

$Gain percent = \frac{Gain}{CP} \times 100$%

                           $= \frac{120}{960} \times 100$%

                           $= \frac{1}{8} \times 100$%

                           $= \frac{25}{2}$%

                           $= 12.5$%

Therefore, the Cost price of the camera is Rs. 960.

The gain percent earned by the dealer is 12.5%.