By selling a watch for ₹2,000, a shopkeeper loses 20%. How much would he gain or lose by selling it for ₹3,000?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 20% gain.
S.P. = Rs.2000
Loss = 20%
C.P. = 2000 × 100/(100 - 20)
⇒ 2000 × 100/80 = Rs.2500
When selling the watch at Rs.3000
Increased in price = Rs.3000 - Rs.2500 = Rs.500
Profit = 500/2500 × 100 = 20%