A horse was sold for Rs.60,000 at a profit of 20%. For what price should he have sold to gain a 30% profit ?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Rs.65,000
Given:
SP = Rs 60000
Profit% = 20%
Formula used:
SP = CP + CP × P% ---- (1)
Where, SP = selling price, CP = cost price and P = profit
Calculations:
Let the CP be x
Using equation (1), we get
⇒ 60000 = x + 20% of x
⇒ 60000 = 1.2x
⇒ 60000/1.2 = x
⇒ x = 50000
Hence, Selling price when the profit is 30%.
SP = 50000 + 30% of 50000
⇒ SP = 50000 + 15000
⇒ SP = Rs 65000