Multiple choice

On selling a watch at 4/5 of the marked price, there is loss of 4%. What will be the ratio of the marked price and cost price of the watch?

  1. 6 : 5

  2. 5 : 3

  3. 10 : 7

  4. 7 : 5
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A Correct answer
Explanation

SP = (4/5)MP. Also SP = 0.96 * CP. So (4/5)MP = 0.96 * CP. MP/CP = 0.96 * 5 / 4 = 0.24 * 5 = 1.2 = 6/5.

AI explanation

Let the marked price be 100, so the selling price is 4/5 of 100, which is 80. Since there is a 4% loss, the cost price must be (80 / 0.96) = 1000 / 12. The ratio of marked price to cost price is 100 divided by (1000 / 12), which simplifies to 1200 / 1000 or 6 : 5.

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