Discussion
In what proportion must water be added to spirit to gain 20% by selling it at the cost price?
Answer: B
Selling at cost price means the whole gain comes from the free water.
A gain of 20% is \( \tfrac{1}{5} \) of the cost, and that profit is exactly the value of the water added:
\[ \frac{\text{water}}{\text{spirit}} = \frac{1}{5} \]
Checking with 5 litres of spirit costing Rs. 5: adding 1 litre of water gives 6 litres sold for Rs. 6, a profit of Re. 1 on Rs. 5 - exactly 20%.
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