A car is sold for ₹85000 at a loss of 20%. What is the cost price (CP) of the car?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹106250
A loss of 20% is 20% of the cost price, so the car is sold for \(100\%-20\%=80\%\) of its cost price.
The selling price is \(80\%\) of CP: \(80\%\) of CP \(=85000\)
Cost price, going back from 80 to 100: \(\displaystyle \text{CP}=\frac{85000\times100}{80}=106250\)