A person bought an article and sold it at a loss of 10 percent. If the had bought it for 30 percent less price and sold it for Rs. 20 more, then he would earn a profit of 40 percent. What is the cost price of the article?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option1 i.e. Rs. 250.
The cost price of the article = ( x).
Selling price at 10% loss = x - 0.1x = 0.9x
⇒ New cost price = x - 0.3x = 0.7x
The selling price were Rs. 20 more, the selling price would be:
⇒ New selling price = 0.9x + 20
Profit of 40%
⇒ New selling price = 1.4 × 0.7x = 0.98x
Equating the two expressions for the new selling price:
⇒ 0.9x + 20 = 0.98x
⇒ 20 = 0.98x - 0.9x
⇒ 20 = 0.08x
⇒x = 20 / 0.08 = 250
The cost price of the article is Rs. 250.