Multiple choice

4% of selling price of an article is equal to 5% of its cost price. Again 20% of the selling price is Rs.120 more than 22% of its price. The difference of cost price and selling price

  1. Rs.2500

  2. Rs.2000

  3. Rs.1500

  4. Rs.1000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

From the first statement: 4% of SP = 5% of CP, which means SP/CP = 5/4 = 1.25. Let CP = x, then SP = 1.25x. From the second statement: 20% of SP = 22% of CP + 120. Substituting: 0.20(1.25x) = 0.22x + 120, which gives 0.25x = 0.22x + 120. Solving: 0.03x = 120, so x = 4000. Therefore CP = Rs.4000, SP = Rs.5000, and SP - CP = Rs.1000.

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