A watch is sold at a profit of 25%. If both the cost price and the selling price of the watch are decreased by Rs.75, then the profit would be 30%. The original selling price (in Rs.) of the watch is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. 562.50.
Let the original cost price be C
Then, the original selling price = 1.25C
After reducing both CP and SP by ₹75:
New CP = C - 75, New SP = 1.25C - 75
Given: New profit is 30%
1.25C - 75 = 1.3(C - 75)
1.25C - 75 = 1.3C - 97.5
22.5 = 0.05C
C = 22.5 / 0.05 = 450
Original SP = 1.25 × 450 = ₹562.5