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Question : A trader sold an article at a profit of 20%. Had he bought that article at 60% less price and sold it at INR 90, he would have gained 50%. What is the value (in INR) of the cost price?

Option 1: 150

Option 2: 200

Option 3: 250

Option 4: 300


Team Careers360 15th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: 150


Solution : When the price is 60% less than the original cost price,
So, the new cost price = 40% of the original cost price
In this case, profit = 50% of new cost price = 50% of 40% of original cost price = 20% of the original cost price
Also, the new selling price = INR 90
Since selling price = cost price + profit
So, INR 90 = 40% of original cost price + 20% of original cost price
⇒ INR 90 = 60% of the original cost price
⇒ Original cost price = $\frac{90}{0.6}$ = INR 150
Hence, the correct answer is 150.

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