A shopkeeper sold an article for ₹455 at a loss (in ₹). If he sells it for ₹490, then he would gain an amount four times the loss. At what price (in ₹) should he sell the article to gain 25%?
Answer & explanation
Correct answer: option 2
Let the cost price = x.
According to the question,
4 × (x - 455) = (490 - x)
4x – 1820 = 490 - x
CP = 462
Now, to make 25%, the shopkeeper has to it at = (462 × 1.25) = Rs. 577.50