Assume the original cost of the watch is 100.
Ram purchased the watch at 109 of the original cost.
Cost Price =109×100
Cost Price =90
Ram sold the watch at 8% more than the original cost.
Selling Price =100+8% of 100
Selling Price =100+8
Selling Price =108
Profit =Selling Price−Cost Price
Profit =108−90
Profit =18
Profit percentage =Cost PriceProfit×100
Profit percentage =9018×100
Profit percentage =51×100
Profit percentage =20%
Therefore, Ram made a profit of 20%.