Multiple choice

A person bought an article and sold it at a loss of 10%. If he had bought it for 20% less and sold it for Rs.75 less, he could have gained 25%. What is the cost price?

  1. 250

  2. 225

  3. 200

  4. 275

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A Correct answer
AI explanation

Assume the original cost price is x. The initial selling price becomes 0.90x. The new cost price is 0.80x, and the new selling price is 0.90x minus 75. Using the profit percentage formula, 0.90x minus 75 equals 1.25 multiplied by 0.80x. Solving the equation 0.90x minus 75 equals x gives x as 250.