Ram purchases two watches for Rs.3,500. By selling one watch at a point of 25 percent and the other at a loss of 10 percent he neither earns profit nor suffers loss in the whole transaction. What is the cost price of each watch ?
Answer & explanation
Correct answer: option 3
Let the cost price of the first watch be Rs.x. Then,
Cost price of second watch = Rs.y
It is given that
In the whole transaction, the man neither gains nor loses.
∴ Gain on the sale of first watch = Loss in the sale of the second watch
⇒25% of Rs.x= 10% of Rs.y
⇒ \(\frac{x}{y}\) = \(\frac{10}{25}\)
⇒ 35x = 3500
⇒ x = 100
⇒ 25x = 2500
⇒ 10x = 1000