Question

An iron box is sold at a gain of 16%. If it were sold for Rs. 20 more, there would have been a gain of 20%. Find the cost price of iron box.

• A. Rs. 420
• B. Rs. 580
• C. Rs. 480
• D. Rs. 500

Answer 1

Answer: (D)

Rs. 500

Let SP be 'x'
$\frac{S{P}_1}{100+x_1}=\frac{S{P}_2}{100+x_2}$
$\frac{x}{100+16}=\frac{x+20}{100+20}$
$\frac{x}{116}=\frac{x+20}{120}$
x = Rs. 580
we have
CP = $\frac{100\times SP}{100+x}$
$=\frac{100\times 580}{100+16}$

= Rs. 500