A person bought an article and sold it at a loss of 20 percent. If he had bought it for 30 percent less price and sold it for Rs.125 more, then he would earn a profit of 50 percent. What is the cost price of the article
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Rs 500.
The original cost price of the article = C
the selling price = S
the person sells the article at a loss of 20%. Therefore, the selling price ( S ) is 80% of the cost price.
⇒ S = 0.80C
the person buys the article for 30% less than the original cost price. Thus, the new cost price is ( 0.70C). The selling price is Rs. 125 more than the original selling price ( S ), and the person makes a 50% profit. Therefore, the new selling price is:
⇒ 1.50 × 0.70C = 1.05C
the selling price is Rs. 125 more than the original selling price:
⇒ 1.05C = S + 125
S = 0.80C
⇒ 1.05C = 0.80C + 125
⇒1.05C - 0.80C = 125
⇒ 0.25C = 125
⇒C = 125 / 0.25 = 500
Thus, the original cost price of the article is Rs. 500.