Correct Answer - Option 4 : Rs. 720
Given:
Loss % = 9%
Initial profit% = 12%
Price with profit - Price with loss = Rs. 126
Concept:
Consider the CP of the article to be 100a, then proceed.
Formula used:
If there is a profit of r%;
then SP = CP[(100 + Profit%)/100]
Calculation:
Let the Cost price of the article = 100a
∴ Selling price at 9% loss = 100a - (9/100) × 100a
= 100a - 9a
= 91a
Selling price at 12% profit = 100a + (12/100) × 100a
= 100a + 12a
= 112a
∵ 112a - 91a = Rs. 126
⇒ 21a = Rs. 126
⇒ a = 126/21
⇒ a = Rs. 6
∴ Cost Price of the article = 100a
= 100 × 6
= Rs. 600
∴ SP when profit is 20% = CP[(100 + Profit%)/100]
= 600[(100 + 20)/100]
= 600[(120/100)]
= Rs. 720