Question

A man buys an article and sells it at a profit of $20$%. If he would buy it at $20$% less and sell it for Rs $75$ less he would have gained $25$%. What is the cost price (in Rs) of the article?

Answer 1

Let the C.P. of the article be Rs. x

He makes a profit of 20%

Hence,

S.P. = Rs.$\frac{120x}{100}$

$=Rs.\frac{6x}{5}$

If he would buy it at 20% less then new C.P. = Rsx $(1-\frac{20}{100})$

$=Rs.x(1-\frac{1}{5})$

$=Rs.\frac{4x}{5}$

He would sell it for Rs. 75 less Then the new S.P. = Rs. $(\frac{6x}{5}-75)$

He gains 25% then the new S.P. = Rs. $\frac{125}{100}\times \frac{4x}{5}=Rs.x$

Hence,

$\frac{6x}{5}-75=x$

$\Rightarrow \frac{6x}{5}-x=75$

$\Rightarrow \frac{x}{5}=75$

Hence the required C.P. = Rs.375