Arjun makes a profit of 18% by selling a bike for Rs 59,000. If the cost price of the bike increases by 5% and Arjun wants to make the same amount of profit, what should the new selling price be?

ARs 61,500 ✓ Correct

BRs 62,500

CRs 60,000

DRs 58,000

Correct answer: (A) Rs 61,500

Explanation

The new selling price should be Rs 61,500.

CP = 59000 / 1.18 = 50000, so profit = 59000 - 50000 = 9000.

New CP after a 5% rise = 50000 x 1.05 = 52500.

The same profit of 9000 is wanted, so new SP = 52500 + 9000.

= 61500.

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