Question

50. A watch is sold at a profit of 20%. If both the cost price and the selling price of the watch are decreased by 100, the profit would be 5% more. Original cost price of the watch is
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Answer 1

Answer:

Let the CP of the watch be x. SP =120/100x or 1.20x.

If both the CP and SP are reduced by Rs.100/- the new expressions would be:

CP = x-100 and SP 1.20x-100

Now CP+ Profit = SP.

So (x-100) + 25/100 (x-100) = 1.20x-100

X-100 + 1/4 (x-100) = 1.20x-100

= x-100+ x /4- 25=1.20x-100

= 4x-400+x- 100 =4.80x-400

=0.2x =100

x =1000/2 = Rs.500