Question

By selling a watch for $Rs1260$ a person gains $5\%$. Find the cost price of the watch.

Answer 1

Let the cost price of watch be $Rs.x$.

According to the question-

$x+\frac{5}{100}\times x=1260$

$x(1+\frac{1}{20})=1260$

$\Rightarrow x=\frac{1260\times 20}{21}$

$\Rightarrow x=60\times 20=Rs.1200$

Hence the cost price of watch is $Rs.1200$.