Question
"A trader sells an item at a 10%
profit. If the cost price were reduced by 10% and the selling price lowered by Rs 4, the profit would have increased to 20%. Determine the original cost price (in Rs) of the item."Solution
ATQ, Let the cost price of the item be Rs. 'p' So, selling price of the item = p × 1.1 = Rs. '1.1p' New cost price of the item = p × 0.9 = Rs. '0.9p' And new selling price of the item = Rs. '1.1p - 4' ATQ: 1.1p - 4 = 0.9p × 1.2 Or, 1.1p - 4 = 1.08p Or, 0.02p = 4 So, p = 200 So, cost price of the item = Rs.200
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