Correct Answer - Option 1 : Rs. 1,860

**Given:**

Profit earned by selling an article for 1680 = loss incurred by selling same article for 1420

Profit percent have to be earned = 20%

**Formula used:**

Profit = Selling price – Cost price

Loss = Cost price – Selling price

% Profit = profit/cost price × 100

% loss = loss/cost price × 100

Selling price = (100 ± a %) /100 × C.P

Where + a% = percent profit,

And, – a% = percent loss

**Concept used:**

Profit and loss is always calculated on C.P

**Calculation:**

Let C.P of the article be X.

Profit earned by selling at 1680 = 1680 – X

Similarly, Loss incurred by selling at 1420 = X – 1420

Profit earned = loss incurred

1680 – X = X – 1420

2X = 1680 + 1420 = 3100

X = 3100/2 = 1550

C.P of article = X = 1550

% Profit = 20%

S.P = (100 + 20)/100 × 1550

⇒ 120/100 × 1550

⇒ 1860

**∴ Selling price of article to gain 20% profit is Rs. 1,860.**