Multiple choice

One trader calculates the percentage of profit on the buying price and another calculates on the selling price. When their selling prices are same, then the difference of their actual profits is Rs. 85 and both claim to have made 20% profit. What is the selling price for each?

  1. Rs. 3000

  2. Rs. 2550

  3. Rs. 2800

  4. Rs. 4000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let SP be the selling price. Trader 1 profit = 0.2 * CP1 = 0.2 * (SP / 1.2) = SP / 6. Trader 2 profit = 0.2 * SP. Difference = 0.2 * SP - SP / 6 = 85. (1.2 * SP - SP) / 6 = 85. 0.2 * SP = 510. SP = 2550.

AI explanation

Let the selling price for each be x. When profit is calculated on the selling price, the profit is 20% of x, which is 0.2x. When profit is calculated on the buying price using the formula Cost Price = Selling Price / (1 + Profit/100), the cost price is x / 1.2, making the actual profit x - (x / 1.2) = x / 6. The difference between their actual profits is x / 5 - x / 6 = x / 30, which equals Rs. 85. Solving for x gives x = 85 * 30 = Rs. 2550.

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