On selling a car to Anuj, Aman suffered a loss of 10%. Anuj sold the car for Rs. 5,54,400 suffering a loss of 12%. What would be the cost price of the car for Aman?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. Rs. 7,00,000.
Anuj sold the car for Rs. 5,54,400 suffering a loss of 12%
We know that,
S.P. = (100 - Loss%)/100 × C.P.
here, S.P. = selling price, C.P. = cost price
⇒ 554400 = (100 - 12)/100 × C.P.
⇒ 554400 × 100/88 = C.P.
⇒ C.P. = 630000
C.P. of Anuj's car = S.P. of the car which Aman Slold to Anuj
Now, C.P. of the car for Aman
Aman suffered a loss of 10%
⇒ S.P. = (100 - L%)/100 × C.P.
⇒ 630000 = (100 - 10)/100 × C.P.
⇒ 630000 × 100/90 = C.P.
⇒ C.P. = Rs.700000
Therefore, the cost price of the car for Aman is Rs.700000.