Multiple choice

A horse was sold at a profit of 25%. Had the cost price and the selling price been Rs. 200 less each, then the profit would have been 5% more. The cost price was

  1. Rs. 1100

  2. Rs. 1200

  3. Rs. 1000

  4. Rs. 900
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

CP = x, SP = 1.25x. New CP = x - 200, New SP = 1.25x - 200. New Profit = 30% = 0.3. (1.25x - 200) / (x - 200) = 1.3. 1.25x - 200 = 1.3x - 260. 0.05x = 60. x = 1200.

AI explanation

Let the original cost price be x; the original selling price at 25% profit is 1.25x. After reducing both by Rs. 200, the new cost price is x - 200 and the new selling price is 1.25x - 200, yielding a 30% profit. The equation becomes 1.25x - 200 = 1.30(x - 200); solving this gives 1.25x - 200 = 1.30x - 260, so 0.05x = 60 and x = 1200. The cost price was Rs. 1200.

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