ABC26GN2739 · Profit and Loss

Subject: General Aptitude · Chapter: Profit and Loss · Exam: 2010 · Marks: · Difficulty:

A watch is sold at a profit of 20\%. If both the cost price and the selling price of the watch are decreased by ₹ 100, the profit would be 5\% more. Original cost price of the watch is

(a)₹ 450

(b)₹ 500

(c)₹ 550

(d)₹ 600

Answer

Answer (as printed): B

Explanation

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

Explanation as extracted from the printed page; notation may be imperfect.

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