Multiple choice

An almirah is sold at a profit of 16%. If it was sold for Rs. 100 more then the seller's profit would have been 20%. What is the cost price of the almirah?

  1. Rs. 1500

  2. Rs. 2500

  3. Rs. 1800

  4. Rs. 2000

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

Let CP = x. At 16% profit, SP = 1.16x. At 20% profit, SP = 1.20x. The difference is 1.20x - 1.16x = 0.04x = Rs. 100. Solving gives x = 100 / 0.04 = Rs. 2500. The extra Rs. 100 represents the additional 4% profit margin.