Vinod buys an article and sells it at a loss of 5%. If he had bought it for 20% less and sold it for Rs. 25 more, he would have gained 20%. What was the original cost price?
Show answer & explanation
Correct answer: A
Explanation
The Correct answer is option 1 i.e.Rs.2,500
Let Vinod purchase an article in 100 units
He sells it at 5 % loss, which is 95 units
If he had bought it for 20% less, i.e. 80 units
Now, he gets 20% profit when he sells it Rs 25 more
His new selling price = 80 × (120/100) = 96 units
According to the question
⇒ New selling price - original selling price = Rs. 25
⇒ 96 units - 95 units = 25
⇒ 1 unit = 25
⇒ 100 units = Rs. 2500
Hence, The original cost price is Rs. 2500