Multiple choice

Given below are two statements: Statement I: The difference between the cost price and sale price of an article is Rs. 240. If the profit is 20%, then the selling price is Rs. 1,440. Statement II: If the cost price of 10 DVDs is equal to the selling price of 7 DVDs, then the gain percent is 42 6 7 . In the light of the above statements, choose the most appropriate answer from the options given below:

  1. Both Statement I and Statement II are correct.

  2. Both Statement I and Statement II are incorrect.

  3. Statement I is correct, but Statement II is incorrect.

  4. Statement I is incorrect, but Statement II is correct.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Statement I: Profit = 20%, SP - CP = 240. 0.2 * CP = 240 => CP = 1200. SP = 1200 + 240 = 1440. Correct. Statement II: 10 * CP_dvd = 7 * SP_dvd. SP/CP = 10/7. Gain = 3/7 = 42.85% = 42 6/7%. Correct.

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