Question
A person loses 20 percent on selling a fan for Rs. 2500.
At what price should he sell the fan to earn a profit of 20 percent?Solution
ATQ, Loss = 0.2CP 0.8CP = 2500 ⇒ CP = 3125 For 20% profit: SP = 1.2CP ⇒ SP = 1.2 × 3125 = 3750 ∴ He should sell it for Rs. 3750 to earn 20% profit. Alternate Solution – Let, cost price = Rs. x According to problem, ⇒ (x - x) × (20/100) = 2500 ⇒ 0.8x = 2500 ⇒ x = 3125 ∴ Selling price at 20% profit, ⇒ (3125 + 3125) × (20/100) ⇒ 3750 ∴ He should sell it for Rs. 3750 to earn 20% profit.
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