Multiple choice

A man bought an article and sold it at a gain of 5%. Had he bought it at 5% less and sold it for Re 1 less, he would have made a profit of 10%. The cost price of the article was

  1. Rs. 100

  2. Rs. 150

  3. Rs. 200

  4. Rs. 250

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP = x. SP = 1.05x. New CP = 0.95x. New SP = 1.05x - 1. Profit = 10% of 0.95x = 0.095x. 1.05x - 1 = 1.05 * 0.95x = 1.045x. 0.005x = 1. x = 200.

AI explanation

Let the cost price be C. The first scenario gives a selling price of 1.05C. If he bought it for 5% less, the new cost is 0.95C, and selling it for Re 1 less gives a new selling price of 1.05C - 1. Using the 10% profit condition, the equation is 1.05C - 1 = 1.10(0.95C), which simplifies to 1.05C - 1 = 1.045C. Solving 0.005C = 1 gives a cost price of Rs. 200.

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