Question
A merchant initially sells wheat with a 25% profit
margin. However, if the selling price is lowered by Rs. 40, the sale results in a 25% loss instead. What was the original selling price of the wheat?Solution
Let the cost price of the wheat be Rs. '100x' So, his initial selling price = '100x' X 1.25 = Rs. '125x' ATQ: ('125x' - 40) = '100x' X 0.75 Or, ('125x - 40) = '75x' Or, '125x - '75x' = 40 Or, '50x' = 40 Or, 'x' = (40/50) = (4/5) So, initial selling price of the wheat = {125 X (4/5)} = Rs. 100
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