Multiple choice

A tradesman sold an article at a loss of 20%. If the selling price had been increased by 100, there would have been a gain of 5%. The cost price of the article was:

  1. 200

  2. 25

  3. 400

  4. 250

  5. 0
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP be x. Loss of 20% means SP = 0.8x. Gain of 5% means SP = 1.05x. The difference is 0.25x = 100. Thus, x = 100 / 0.25 = 400.

AI explanation

Let the cost price be C, making the initial selling price 0.8 times C to reflect a 20% loss. If the selling price is increased by 100, it results in a 5% gain, giving the equation 0.8 times C plus 100 equals 1.05 times C. Solving for C, we find that 0.25 times C equals 100, so the cost price is 400.

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