Question

A shopkeeper sells his goods at 5% loss. Had he sold it Rs. 650 more, he would gain 8%. Find the initial CP.
1. Rs. 5000
2. Rs. 3500
3. Rs. 4800
4. Rs. 6520

Answer 1

Correct Answer - Option 1 : Rs. 5000

Given:

Loss% = 5%

Gain% = 8%

Concept used:

SP = CP × (100 – loss%)/100

Calculation:

Let initial CP be Rs. x

Loss% = 5%

SP = x × (100 – 5)/100

⇒ SP = 95x/100

⇒ SP = 19x/20

If it is sold at Rs. 650 more,

SP = (19x/20) + 650

⇒ (19x/20) + 650 = 108x/100

⇒ (19x/20) + 650 = 27x/25

⇒ 650 = 27x/25 – 19x/20

⇒ x = 100 × 650/13

⇒ x = 5000

∴ The initial CP is Rs. 5000