Paper 1 · Mathematical Reasoning and Aptitude
A trader sells an article at a profit of 20%. Had he bought it at 10% more and sold it for Rs 700 more, he would have earned a profit of 25%. Find the cost price.
ARs 5000
BRs 4000 ✓ Correct
CRs 3800
DNone of the above
Correct answer: (B) Rs 4000 — The cost price is Rs 4000, so that is the answer.
Explanation
★The cost price is Rs 4000, so that is the answer.
★Let the cost price be x, so the original selling price is 1.2x.
★The new cost price is 1.1x, and a 25% profit on it is 1.25 times 1.1x, which is 1.375x.
★The new selling price is Rs 700 more than the old, so 1.375x equals 1.2x plus 700.
★This gives 0.175x equal to 700, so x is 4000.
★So the cost price is Rs 4000.
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