Multiple choice

Jai Pal sells a shirt at a profit of $25$ percent. Had he bought it at $25$ percent less and sold it for Rs. $25$ less he still would have gained $25$ percent. The cost price of the shirt is

  1. Rs. $50$
  2. Rs. $75$
  3. Rs. $80$
  4. Rs. $100$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP = x. Initial SP = 1.25x. New CP = 0.75x. New SP = 1.25x - 25. Profit = 25%, so 1.25x - 25 = 1.25 * (0.75x). 1.25x - 25 = 0.9375x. 0.3125x = 25. x = 25 / 0.3125 = 80.

AI explanation

Let the original cost price be C. The original selling price is 1.25C. Had he bought it at 25% less, the new cost price would be 0.75C. Selling it for 25 rupees less gives a new selling price of 1.25C minus 25, which still represents a 25% gain on the reduced cost, meaning the new selling price equals 1.25 times 0.75C. Setting up the equation 1.25 times 0.75C equals 1.25C minus 25 yields 0.9375C equals 1.25C minus 25. Solving for C gives 0.3125C equals 25, making the original cost price 80 rupees.