Question

A tradesman sold an article at a loss of $20\%$. Had he sold it for $Rs.100$ more, he should have gained $5\%$. The cost price of the article was

• A. Rs. $360$
• B. Rs. $400$
• C. Rs. $425$
• D. Rs. $450$

Answer 1

The correct option is B Rs. $400$

Let the cost price $=Rs.x$
Loss $=20\%$
Loss $=\frac{20}{100}\times x$ = $\frac{x}{5}$
Now, $SP=CP-Loss=x-\frac{x}{5}=\frac{4x}{5}$
If SP was Rs 100 more,
New $SP=\frac{4x}{5}+100$
Profit $=5\%$ of CP $=\frac{5}{100}\times x=NewSP-CP$
Profit $=\frac{x}{20}=\frac{4x}{5}+100-x$
$\frac{20x-16x+x}{20}=100$
$5x=2000$
$x=Rs.400$