The factor **1.20** comes from calculating a **20% gain** on the cost price.

Here's the reasoning:

- A **20% gain** means the dealer is selling the refrigerator for **20% more** than the price he bought it for (i.e., the cost price).
  
- The formula to calculate the selling price with a gain is:
  \[
  \text{Selling Price} = \text{Cost Price} \times (1 + \text{Gain Percentage})
  \]
  
- In this case, the cost price is $11,515 and the gain percentage is 20%. So:
  \[
  \text{Selling Price} = 11515 \times (1 + 0.20) = 11515 \times 1.20 = 13818
  \]
  
This is why we multiplied by 1.20: it represents a 100% of the cost price plus an additional 20%.

Would you like more details or examples?

Here are 5 more related questions:
1. What would the multiplier be for a 15% gain instead of 20%?
2. How do you calculate a selling price for a loss instead of a gain?
3. What happens if the gain is 50%? How would you calculate the selling price?
4. How does the gain percentage affect the overall profit?
5. What is the difference between mark-up and profit percentage?

**Tip:** Always convert percentages to decimals (e.g., 20% = 0.20) when multiplying.

Explore how to calculate a 20% gain on the cost price of an item. This detailed explanation includes the formula: Selling Price = Cost Price × (1 + 0.20). Suitable for high school students and anyone interested in percentage calculations.

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