Question
A seller purchased certain number of watches at prices
ranging from Rs. 850 to Rs. 1150 and sold them at price ranging from Rs. 1000 to Rs. 1300. Find the maximum profit that can be earned by selling 9 such watches.Solution
Maximum profit will be earned when the cost price is least and selling price is maximum. Therefore, least cost price of 9 watches = 9 × 850 = Rs. 7650 Maximum selling price of 9 watches = 9 × 1300 = Rs. 11700 Therefore, maximum profit that can be earned = 11700 – 7650 = Rs. 4050
Money multiplier measures an estimate of the maximum amount of commercial bank money that can be created
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