A merchant bought two watches for ₹9,000 each. He sold one watch at a loss of 10%. At what price (in ₹) should he sell the other watch to earn a profit of 18% overall?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. 13140.
Cost price of each watch = Rs. 9000
Total cost price of both watches = 2 × 9000 = Rs. 18000
He sold one watch at a loss of 10%.
The selling price of the first watch = Cost price - loss
= 9000 - (10% of 9000) = 9000 - [(10 × 9000)/100] = 9000 - 900 = Rs. 8100
⇒ Total overall profit required = 18%
The desired selling price of both watches together = Total cost price + Profit
= 18000 + (18% of 18000) = 18000 + [(18 × 18000)/100] = 18000 + 3240 = Rs. 21240
⇒ Selling Price of the second watch = 21240 - 8100 = Rs. 13140