While selling a bag for Rs. 5688, a person suffered a loss of 10 percent. At what price he should have sold the bag to earn a profit of 20 percent?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Rs. 7584.
The selling price (SP) of the bag = Rs. 5688
Loss percentage = 10%
⇒ SP = CP × (1 - 0.10) = CP × 0.90
⇒ 5688 = CP × 0.90
⇒ CP = 5688/0.90 = 6320
The profit is 20%, the selling price would be:
⇒ SP = CP × (1 + 0.20) = CP × 1.20
⇒ SP = 6320 × 1.20 = 7584
To earn a profit of 20%, the person should sell the bag for Rs. 7584.