Wordpandit Question of the day
Question: An article was sold at a profit of 15%. If the cost price is reduced by 15% and the selling price is increased by Rs. 6.25, there would be profit of 40%. Then, at what price it should be sold to make a profit of 20%?
1. Rs. 156.25
2. Rs. 187.5
3. Rs. 168.75
4. Rs. 175.25
Solution posted below. Click on the plus sign to view the solution.
Answer and Explanation
Answer: Option 2.
Let the CP = Rs x
Hence, in first case SP = Rs 1.15x
Now if CP = 0.85x and the profit is 40%, so the SP will be = 0.85x × 1.4 = 1.19x
It is given that 1.19x – 1.15x = 6.25 => 0.04x = 6.25 => x = 156.25
Hence, the original CP = Rs 156.25
To make a profit of 20%, the SP should be 156.25 × 1.2 = Rs 187.5.