Multiple choice

A cooker is sold at a gain of 16%. If it had been sold for Rs. 20 more, 20% would have been gained. The cost price of the cooker is

  1. Rs. 350

  2. Rs. 400

  3. Rs. 500

  4. Rs. 600
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP be the cost price. At 16% gain, selling price is 1.16×CP. At 20% gain, selling price would be 1.20×CP. The difference is 0.04×CP = Rs. 20. Therefore, CP = 20 ÷ 0.04 = Rs. 500. This question tests the relationship between cost price, profit percentage, and selling price.

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