In what proportion must water be added with milk to gain

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In what proportion must water be added with milk to gain 20% by selling the mixture at cost price?

1. 1 : 5
2. 4 : 1
3. 5 : 1
4. 1 : 1

Correct Option: A

If the cost price of milk be Rs. 100,
then Selling price of milk = Rs. 120
Gain = Selling price of milk - Cost price of milk = 120 - 100 = Rs. 20
∴ Required ratio = 20 : 100 = 1 : 5