Multiple choice

A shopkeeper sells a watch for Rs. 1,500 and incurs a loss of 20%. Later, the shopkeeper sells the same model of watch having the same cost price for Rs. 2,100. What is the percentage profit made on the second sale (based on the actual cost price)?

  1. 8%

  2. 10%

  3. 12%

  4. 15%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A loss of 20% means the selling price of 1,500 is 80% of the cost price. Thus, cost price = 1,500 / 0.8 = 1,875. Selling the watch for 2,100 results in a profit of 2,100 - 1,875 = 225. The profit percentage is (225 / 1,875) * 100 = 12%.

AI explanation

First, find the cost price of the watch using the first sale information. The formula for loss is Cost Price = Selling Price x (100 / (100 - Loss%)), so 1500 x (100 / 80) = 1875. On the second sale, the selling price is 2100, making the profit 2100 - 1875 = 225. The profit percentage is (Profit / Cost Price) x 100, which is (225 / 1875) x 100 = 12%.

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