A watch is sold at a profit of 20%. If both the cost price and the selling price of the watch are decreased… · ABC26GN2739

Let C.P. be ₹ $x$. Profit $=20 \%$. S.P. $=120 \%$ of $₹ x=₹ \frac{6 x}{5}$. New C.P. $=₹(x-100)$. New S.P. $=₹\left(\frac{6 x}{5}-100\right)$. $$\begin{aligned} & \text { Profit }=₹\left[\left(\frac{6 x}{5}-100\right)-(x-100)\right]=₹ \frac{x}{5} . \\ & \therefore \quad \frac{x}{5} \times \frac{1}{(x-100)} \times 100=25 \Rightarrow 20 x=25(x-100) \\ & \quad \Rightarrow 5 x=2500 \Rightarrow x=500 . \end{aligned}$$