Question

Firoz bought a car from showroom A for Rs. 18 lakhs at a certain discount. Had he bought it from showroom B, his profit would have been 18000 more than the actual profit. He sold it at a profit of 5% to Vivek. The average price of car at showrooms A and B is 18.21 lakhs. Find the difference in the prices at which Vivek bought the car and the price at which showroom B sells it.

1. Rs. 60000
2. Rs. 55000
3. Rs. 54000
4. Rs. 64000

Answer 1

Correct Answer - Option 1 : Rs. 60000

Given:

Firoz bought a car from showroom A for Rs. 18 lakhs at a certain discount.

Had he bought it from showroom B, his profit would have been 18000 more than the actual profit.

He sold it at a profit of 5% to Vivek.

The average price of car at showrooms A and B is 18.21 lakhs.

Formula used:

Profit or Gain = Selling price – Cost Price

Loss = Cost Price – Selling Price

Profit percentage = (Profit /Cost Price) × 100

Loss percentage = (Loss / Cost price) × 100

Calculation:

Let the prices at showrooms A and B be Rs. (1800000 + x) and Rs. (1800000 + x + 18000) respectively.

Average price = Rs. [{(1800000 + x) + (1818000 + x)}/2]

⇒ [{(1800000 + x) + (1818000 + x)}/2] = 1821000

⇒ x = 12000

Price at which showroom B sells it = Rs. (1818000 + 12000)

⇒ Rs. 1830000

Vivek bought it at a price of = Rs. (1800000 × 1.05)

⇒ Rs. 1890000

Difference = Rs. (1890000 – 1830000)

⇒ Rs. 60000

∴ required difference is Rs. 60000