A shopkeeper buys two books for Rs.300. He sells the first book at a profit of 20% and the second book at a loss of 10%. What is the selling price of the first book, if, in the whole transaction there is no profit no loss?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e Rs.120
Let the cost price of the first book in the transaction be Rs.y, then the cost price of the second book becomes Rs. (300 - y).
He sells the first book at 20% profit, then the selling price = 1.2y
He sells the second book at a 10% loss, then the selling price = 0.9(300 - y)
⇒ 270 - 0.9y
Total selling price ⇒ 1.2y + 270 - 0.9y = 300
⇒ 0.3y + 270 = 300
⇒ 0.3y = 30
⇒ y = Rs.100
Selling price of the first book = 1.2y = 1.2(100)
⇒ Rs.120