Multiple choice

A fruit merchant makes a profit of 20% by selling apples at a certain price. If he hikes the price of each apple by 1.2 times, he would gain 40%. Find the original price at which he sold an apple.

  1. 10523

  2. 10324

  3. 12300

  4. 11000

  5. NONE OF THESE

Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Let us assume the cost price = 100 X. Then, selling price = 120 X. Now, the price changes to 1.2 times, so the selling price would be 144X. As per the given data: Profit would be 44X = 40/100 => X = 1000/11 => 120X = 120 * (1000/11) = 10909.09 Option 5 is correct.