Ankit sells a chair at a loss of 25 percent. If he sells it for Rs. 900 more, then he earns a profit of 5 percent. What should be the selling price of the chair to earn a profit of 40 percent?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. Rs. 4200.
Let, the C.P. of the chair be Rs.x
Ankit sells a chair at a loss of 25 percent = (x - 25%x) = 0.75x
If he sells it for Rs. 900 more, then he earns a profit of 5 percent
⇒ x + 5%x = 1.05x
⇒ 0.75x + 900 = 1.05x
⇒ 1.05x - 0.75x = 900
⇒ 0.3x = 900
⇒ x = Rs.3000
Selling price at 40% profit
⇒ S.P. = x + 0.40x = 1.40x
⇒ 1.40 × 3000 = Rs.4200
Thus, the S.P. of the chair to earn a profit of 40% is Rs. 4200