Multiple choice

Anil makes a profit of 18% on cost price by selling a washing machine for Rs. 5900. If the cost price of the machine is increased by 5% and he wants to earn the same profit, what will be the new profit percent on selling price?

  1. 14.63%

  2. 12.25%

  3. 15.96%

  4. 17.14%

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Selling price = 5900, profit = 18%. Cost price = 5900 / 1.18 = 5000. New cost price = 5000 * 1.05 = 5250. Profit amount = 5900 - 5000 = 900. New selling price to keep same profit = 5250 + 900 = 6150. New profit percent on selling price = (900 / 6150) * 100 = 14.63 percent.

AI explanation

Using the cost price formula, the original cost price of the washing machine is 5900 divided by 1.18, which equals 5000. The new cost price after a 5% increase is 5000 times 1.05 which equals 5250, and to earn the same absolute profit of 900, the new selling price must be 6150. To find the new profit percent on selling price, use the formula (profit divided by selling price) times 100. This gives (900 divided by 6150) times 100, resulting in 14.63%.

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