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%?

Answer Options:
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.

Solution:

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.