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1. A dishonest milkman professes to sell his milk at cost price but he mixes it with water and thereby gains 25%. The percentage of water in the mixture is:
Then, S.P. of 1 litre of mixture = Rs. 1, Gain = 25%
C.P. of 1 litre mixture = Rs. =
By the rule of alligation, we have:

∴ Ratio of milk to water = : = 4 : 1
Hence, percentage of water in the mixture = % = 20%
Solution:
Let C.P. of 1 litre milk be Rs. 1Then, S.P. of 1 litre of mixture = Rs. 1, Gain = 25%
C.P. of 1 litre mixture = Rs. =
By the rule of alligation, we have:

∴ Ratio of milk to water = : = 4 : 1
Hence, percentage of water in the mixture = % = 20%