A trader sells an item at 25% profit. Had he bought it at 15% more and sold it for₹147 more, he would have earned a profit of 30%. Find the cost price of the item.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e ₹600.
Let the original cost price be x.
Profit = 25%
Selling price = x + 25% of x = 1.25x
New cost price = x + 15% of x = 1.15x
New profit = 30%
New selling price = 1.15x + 30% of 1.15x = 1.15x × 1.30 = 1.495x
1.495x − 1.25x = 147
⇒ 0.245x = 147
⇒ x = 147 ÷ 0.245
⇒ x = 600