Question
A vendor first increased the price of a book by 18% and
then by 25%. If he sells it after allowing a discount of 20%, then he will earn a profit of Rs. 90. What should be the selling price of the book if the seller wishes to earn a profit of 55%?Solution
ATQ, Let the cost price of the book be Rs. '100x' ATQ; 100x × 1.18 × 1.25 × 0.80 = 100x + 90 Or, 118x = 100x + 90 Or, 18x = 90 So, x = 90 / 18 = 5 So, cost price of the book = 5 × 100 = Rs. 500 So, selling price of the book when sold at 55% profit = 500 × 1.55 = Rs.775
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