A person sold an item at a profit of 6.5%. If he had sold it for Rs.1250 more, he would have made a profit of 19%. What is the cost price of the item?

ARs.10,000 ✓ Correct

BRs.10,500

CRs.9,000

DRs.9,500

Correct answer: (A) Rs.10,000

Explanation

The cost price is Rs. 10,000.

The extra Rs. 1250 raises the profit from 6.5% to 19%.

That extra equals (19 - 6.5)% = 12.5% of the cost price.

0.125 x CP = 1250, so CP = 1250 / 0.125.

CP = 10,000.

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