Multiple choice

An article is sold at 20% profit instead of 5% loss, the man gains Rs 120 more. What is the cost price (in Rs) of that article?

  1. 480

  2. 720

  3. 1020

  4. 1080
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let cost price be C. Selling at 20% profit means SP1 = 1.2C. Selling at 5% loss means SP2 = 0.95C. The difference is 1.2C - 0.95C = 0.25C. Given 0.25C = 120, C = 120 / 0.25 = 480.

AI explanation

Let the cost price of the article be x. The selling price at a 20% profit is 1.20x, and the selling price at a 5% loss is 0.95x. The difference between these two selling prices equals 120, giving the equation 1.20x - 0.95x = 120. Solving this equation yields 0.25x = 120, which makes the cost price Rs. 480.

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