Ram sold a plot for Rs.4,00,000 at a 20% loss. For what price should he sell the plot to gain a 5% profit?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. Rs.5,25,000.
Calculations:
Let the cost price be 100x
After a loss of 20%, Selling price = 80% of 100x = 80x
According to the question;
⇒ 80x = 400000
⇒ x = 5000
Cost price = 100x = 500000
Selling price if the profit is 5% = 105% of 500000 = Rs 525000