Question

Rahul sold his car for a profit of 15%. If it has been sold for 25000 more then would have been a gain of 20%. What is the cost price of the car?
1. Rs. 5,55,000
2. Rs. 5,05,000
3. Rs. 5,00,500
4. Rs. 5,00,000

Answer 1

Correct Answer - Option 4 : Rs. 5,00,000

Given:

Profit = 15%

If sold = 25,000 more

Gain% = 20%

Concept used:

S.P = C.P × (100 + P%)/100

Where,

S.P → Selling price

C.P → Cost price

P% → Profit%

Calculations:

Let the cost price of the car be 100x

S.P of the car when it is sold at 15% profit = 100x × 115/100 = 115x

S.P of the car when it is sold at 20% profit = 100x × 120/100 = 120x

According to the question,

⇒ 120x – 115x = 25000

⇒ 5x = 25000

⇒ x = 5000

The cost price of the car = 100x = 100 × 5000 = 5,00,000

∴ The cost price of the car is Rs. 5,00,000.