A trader sells an article for Rs. 425 and loses 15%. At what price (in Rs) should he sell the article to earn 5% profit?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 525.
The initial selling price = Rs. 425
Loss = 15%
Required profit = 5%
C.P. = 100/(100 Loss %) x S.P
S.P = (100+ Profit%)/100 x C.P
where, C.P Cost price; S.P. Selling price
The cost price of the article = 100/(100 - 15) × 425
⇒ (100/85) × 425 = Rs.500
The required selling price (100+5)/100 × 500
⇒ (105/100) x 500 = Rs.525
The trader should sell the article at Rs. 525