Multiple choice

A watch is sold at a profit of 20%. If both the cost price and selling price of the watch decreased by Rs. 200, the profit would be 10% more. What is the original cost price of the watch?

  1. Rs. 500

  2. Rs. 550

  3. Rs. 600

  4. Rs. 650

  5. None of these

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Original: CP = x, SP = 1.2x. After reduction: CP = x - 200, SP = 1.2x - 200. New profit = 30% (20% + 10% more). So 1.2x - 200 = 1.3(x - 200) = 1.3x - 260. Solving: 1.2x - 200 = 1.3x - 260, so 60 = 0.1x and x = 600. Option C is correct.