Correct Answer - Option 2 : Gain 5%
Given :
When article sold at Rs. 123.40 it gains
When article sold at Rs. 108 it losses
Gain is 20% more than the loss
To find :
Gain or loss when article sold at Rs. 120.75
Formula used :
Loss = cost price - selling price
Gain = selling price - cost price
Gain% = (Gain/cost price) × 100
Solution :
Let the cost price be x
It losses when selling price = Rs. 108
⇒ Loss = (x - 108) ----(1)
It gains when selling price = Rs. 123.40
⇒ Gain = (123.40 - x)
A.T.Q.,
(123.4 - x) = (x - 108) × (120/100)
⇒ 1234 - 10x = 12x - 1296
⇒ 22x = 2530
⇒ x = 115
So, cost price = Rs. 115
Now,
Selling price = 120.75
⇒ Gain = 120.75 - 115
⇒ Gain = 5.75
⇒ Gain% = (5.75/115) × 100
⇒ Gain% = 5%
∴ The gain% when sold at Rs. 120.75 is 5%.