Multiple choice

A person sells an article at a profit of 10%. If he had bought the article at 5% less cost and sold for Rs.80 more. He would have gained 20%. The cost price of the article is

  1. Rs.3200

  2. Rs.2500

  3. Rs.2400

  4. Rs.2000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let CP = x. Original SP = 1.1x (10% profit). New CP = 0.95x (5% less). New SP = 1.1x + 80, and this gives 20% profit on new CP, so 1.2 × 0.95x = 1.14x. Setting 1.1x + 80 = 1.14x gives 0.04x = 80, so x = 2000. Verification: At 5% less CP (1900), selling for 1980 gives 80 profit, which is 80/1900 ≈ 4.2%, not 20%... wait, 1.2 × 1900 = 2280, and 1.1 × 2000 + 80 = 2280. This matches. CP = Rs. 2000.

Keep practicing — related questions