Ram purchases two watches for Rs. 3,500. By selling one watch at a profit of 25% and the other at a loss of 10%, he neither earns a profit nor suffers a loss in the whole transaction. What is the cost price of each watch?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. Rs. 1000 and Rs. 2500.
Let the cost price of the first watch = Rs. x
The cost price of the second watch = Rs. (3500 - x)
(125/100)x + (90/100) × (3500 - x) = 3500
⇒ 1.25x + (3150 - 0.9x) = 3500
⇒ 0.35x + 3150 = 3500
⇒ 0.35x = 3500 - 3150 = 350
⇒ x = 350/0.35 = 1000
⇒ 3500 - x = 3500 - 1000 = 2500
The cost price of the two watches is Rs. 1000 and Rs. 2500.