Question
A shopkeeper sells an item for ₹500. If he had sold it
for ₹600, his profit would have been 25%. What is the cost price of the item?Solution
Let the cost price be C. Profit percentage is given by: Profit = Selling price - Cost price If selling price is ₹600, the profit would have been 25%. So, Profit = 25% of C = 0.25C. Thus, 600 - C = 0.25C. 600 = 1.25C. C = 600 / 1.25 = ₹480.
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