A person sells wheat at a profit of 25 percent. If he reduces its selling price by Rs. 40, then he suffers a loss of 25 percent. What was the initial selling price of the wheat?

Let the cost price of the wheat be 100 percent, meaning the initial selling price at a 25 percent profit is 125 percent of the cost. Reducing this selling price by 40 rupees results in a 25 percent loss, making the new selling price 75 percent of the cost. The difference between the two selling prices is 125 percent minus 75 percent, which equals 50 percent of the cost price; since this difference is 40 rupees, the total cost price is 80 rupees. The initial selling price is therefore 125 percent of 80 rupees, which calculates to 100 rupees.

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