Multiple choice

A merchant was gaining 10% by selling rice. Owing to the floods, he paid Rs. 2.50 more per kg than before and sold 1 kg for Rs. 4.50 more than before, thus gaining 20%. What was the cost price per kg of rice before the floods?

  1. Rs. 15

  2. Rs. 16

  3. Rs. 17

  4. Rs. 18

  5. Rs. 20
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let CP = x. Initial SP = 1.1x. New CP = x + 2.5. New SP = 1.1x + 4.5. New gain = 20%, so 1.2(x + 2.5) = 1.1x + 4.5. 1.2x + 3 = 1.1x + 4.5. 0.1x = 1.5, so x = 15.

AI explanation

Let the original cost price per kg be CP, so the original selling price for a 10% profit is 1.10 CP. After the flood, the new cost price is CP plus 2.50 and the new selling price is 1.10 CP plus 4.50, yielding a 20% profit on the new cost. Therefore, 1.10 CP plus 4.50 equals 1.20 times (CP plus 2.50), which solves to 1.10 CP plus 4.50 equals 1.20 CP plus 3, resulting in CP equal to Rs. 15.

Keep practicing — related questions