If Tom bought a pen for $30 and sold it gaining 20% on his cost price, how much money did he gain?

• A. $4
• B. $5
• C. $6
• D. $7

Answer: (C)

To determine how much money Tom gained from selling the pen, we first need to calculate the gain based on his cost price and the percentage gain.

Tom bought the pen for $30. He sold it with a gain of 20%. To find the amount of gain, we calculate 20% of the cost price.

The calculation for 20% of $30 is as follows:

[

\text{Gain} = \text{Cost Price} \times \frac{\text{Percentage Gain}}{100}

]

[

\text{Gain} = 30 \times \frac{20}{100} = 30 \times 0.2 = 6

]

Thus, the gain Tom made from selling the pen is $6.

This is the amount that reflects the profit Tom received from this transaction, indicating how much money he had over and above the original amount spent on the pen. By calculating the gain based on the cost price and the percentage, we can clearly see how Tom's profit translates into actual dollars earned.