The profit earned when an article is sold for Rs 8000 is 20 times the loss incurred when it is sold for Rs 2750. At what price should the article be sold to earn a 20% profit?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Rs 3600
Both the profit and the loss are measured from the same cost price, so one equation in the cost price settles it.
Let the cost price be Rs \(C\)
Profit at Rs 8000 \(=8000-C\); loss at Rs 2750 \(=C-2750\)
\(8000-C=20(C-2750)=20C-55000\)
\(21C=63000\), so \(C=3000\)
Price for 20% profit \(\displaystyle =3000\times\frac{120}{100}=\) Rs 3600
The article should be sold for Rs 3600.