Question

A bicycle is sold at a gain of $16\%$. If it had been sold for Rs. $20$ more, $20\%$ would have been gained. The C.P. of the bicycle is _________.

• A. Rs. $350$
• B. Rs. $400$
• C. Rs. $500$
• D. Rs. $600$

Answer 1

The correct option is C Rs. $500$

let the C.P. of the bicycle is Rs. $x$

Selling prices after $16$ gain will be $1.16x$

$20\%$ gain on the cost price is equal to $0.2x$

According to the given condition,

$1.16x+20=0.2x$

$0.04x=20$

$x=500$