A chair is sold for ₹96 at 20% loss. The cost price of the chair is
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → ₹120
A loss per cent is always taken on the cost price. A 20% loss means the selling price is 80% of the cost price.
The selling price ₹96 is 80% of the cost price: \(\displaystyle \frac{80}{100}\times\text{CP}=96\)
\(\displaystyle \text{CP}=\frac{96\times100}{80}=120\)