Ali bought watch from a wholesaler for Rs. 250. In addition, he paid a sales tax of 15% on the cost price. He then sold the watch for Rs. 315. How much profit is made by Ali.

Rs. 27.50

Rs. 25

Rs. 22.50

Rs. 20

First, let's calculate the total cost price (CP) including the sales tax:

CP = Rs. 250 (cost) + 15% of Rs. 250 (sales tax)

= Rs. 250 + (15/100) × Rs. 250

= Rs. 250 + Rs. 37.50

= Rs. 287.50

Now, let's calculate the profit:

Profit = Selling Price (SP) - Total Cost Price (CP)

= Rs. 315 - Rs. 287.50

= Rs. 27.50

So, Ali made a profit of Rs. 27.50!