Question

A year ago, Jay bought a bicycle for 2000 bucks. Now, he wants another bicycle. So, he sells his previous bicycle at a loss of 10% to his friend. He adds 500 bucks to the amount received from selling the bicycle and purchases a new bicycle. Find the cost of the new bicycle.

• A. 2700 bucks
• B. 2300 bucks
• C. 1300 bucks
• D. 1800 bucks

Answer 1

The correct option is B 2300 bucks

Cost of the previous bicycle = 2000 bucks

Loss on selling the bicycle = 10% of 2000, i.e., $\frac{10}{100}$ x 2000 = 200 bucks

Amount received from selling the old bike = 2000 – 200 = 1800 bucks

Additional amount spent on purchasing new bike = 500 bucks

Cost of new bicycle = 1800 + 500 = 2300 bucks

Thus, the cost of the new bicycle is 2300 bucks.