A shopkeeper sells a table at a loss of 20%. Find the cost price of the table if its selling price is Rs 1,440.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Rs 1,800
At a loss of 20%, the selling price is 80% of the cost price.
\(80\%\) of CP \(=1440\)
CP \(\displaystyle =\frac{1440\times100}{80}=1800\)
The cost price is Rs 1,800.
Why the other options are incorrect
Option (2) Rs 1,152 — Incorrect. This takes away 20% again; the SP is already 80% of the CP.
Option (3) Rs 1,728 — Incorrect. This adds 20% of the SP; the loss is 20% of the CP, not of the SP.
Option (4) Rs 1,200 — Incorrect. This treats the 20% as a profit; at a loss the CP is more than the SP.