Multiple choice

A table is sold at a profit of 20%. If both the cost price and the selling price of the table are decreased by Rs. 100, the profit would be 5% more, original cost price of the table is-

  1. Rs. 600

  2. Rs. 550

  3. Rs. 650

  4. Cannot be determined

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

Let CP = x. SP = 1.2x (20% profit). New CP = x-100, New SP = 1.2x-100. New profit = (1.2x-100) - (x-100) = 0.2x = 20% of x. But question says profit becomes 5% more than original, i.e., 25% of new CP. So 0.2x = 0.25(x-100). This gives 0.2x = 0.25x - 25, so 0.05x = 25, and x = 500. Since 500 is not in options, E is correct.

Keep practicing — related questions