Ram sold a plot for Rs4,00,000 at a 20% loss. For what price should he sells the plot to gain a 5% profit ?
Answer & explanation
Correct answer: option 1
20% loss on cost price means 80% of cost price and 5% of profit on cost price means 105% of the cost price.
80% of cost price = Rs.4,00,000
105% of cost price = \(\frac{4,00,000}{80}\) × 105 = Rs.5,25,000