Multiple choice

Two vendors Anshu and Rinku do business in unique style. Anshu calculates his profit percentage on the selling price whereas Rinku calculates his on the cost price of the goods. They find that the difference of their profits is Rs. 100. If the selling price is same for both of them and both get 25% profit, find the selling price?

  1. Rs. 1500

  2. Rs. 1800

  3. Rs. 2000

  4. Rs. 2200
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let SP be S. Anshu's profit is 0.25S. Rinku's profit is 0.25 * (Cost Price). Since Rinku's profit is 25% of CP, CP = S/1.25 = 0.8S. Rinku's profit is 0.25 * 0.8S = 0.2S. The difference is 0.25S - 0.2S = 0.05S = 100, so S = 2000.

AI explanation

Let the selling price be S. Anshu calculates his 25% profit on the selling price, so his profit is 0.25S. Rinku calculates his 25% profit on his cost price, meaning his cost price is 0.80S and his profit is 0.20S. The difference between their profits is Rs. 100, so 0.25S - 0.20S = 100. Solving 0.05S = 100 gives a selling price of Rs. 2000.

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