A horse was sold for Rs.60,000 at a profit of 20%. For what price should he have sold to gain a 30% profit?
Answer & explanation
Correct answer: option 2
Let the CP = 100x.
By selling the horse at 20% profit, so SP will be:
SP = \(\frac{100x(100 + 20)}{100}\) = 120x
According to the question:
⇒ 120x = 60000
⇒ x = 500
⇒ CP = 100x = 50000
Now to gain 30%
⇒ SP = \(\frac{50000(100 + 30)}{100}\)
= 65000