Question

11. By selling a chair for + 420 a dealer suffered a loss of 16%, At what price should he sell it to gain 20%?​​

Answer 1

Solution:

lets first calculate cost price of chair

let cost price of chair = x

loss = 16% of C.P = 16% of x = 16x/100 = 4x/25

Sales price = Cost Price - loss

420 = x - (4x/25)

420 =  (25x - 4x) / 25

(420 × 25)/21 = x

x = 500

Cost price of chair = 500

SALES PRICE FOR GAIN of 20%

Sales Price = Cost Price + 20% of cost Price

                  = 500 + (20/100) × 500

                  = 500 + 100 = 600

Hence to make gain of 20% , dealer should sell it for Rs 600.

You can see how math is important. if dealer know this calculation he could have saved his losses.