Question

A shopkeeper sold an article at a loss of $20\%$. If the selling price had been increased by ₹100, there would have been a gain of $5\%$. What was the cost price of the article?

• A. ₹400
• B. ₹500
• C. ₹450
• D. ₹520

Answer 1

The correct option is A

₹400

Let the C.P be ₹ x.
Loss is 20%

We know that,
$Loss\%=\frac{CP-SP}{CP}\times 100$
$20=\frac{x-SP}{x}\times 100$
$\frac{20x}{100}=x-SP$
$SP=x-\frac{20x}{100}$

$\therefore \text{S.P}=x\times \frac{80}{100}=\frac{80x}{100}$

When It is sold for 100 rupees more the gain is $5\%=\frac{80x}{100}+100=x\times \frac{105}{100}$

$\frac{x}{4}=₹100$

$x=₹400$

So, the cost price of the article is ₹400.