Question

A saree is sold at a profit of $20\%$. If both the cost price and selling price are decreased by Rs. $100$ then the profit would be $5\%$ more. Then the cost price is ?

• A. Rs. 100
• B. Rs. 200
• C. Rs. 300
• D. Rs. 500
• E. None

Answer 1

The correct option is D Rs. 500

Let CP = x
SP = x + 20% of x = 1.2 x
New CP = x - 100
New SP = 1.2x - 100
New profit,
1.2x - 100 - x + 100 = 0.2x
New profit = 25 % of (x - 100)
25 % of (x - 100) = 0.2x
0.2x = [25 *(x - 100) / 100]
20x = 25x - 2500
5x = 2500
x = 500
So, the cost price was Rs. 500