Question

A shopkeeper sells a sweater at loss of 5%.If he had sold it for 260more, he would have made a profit of 15%. Calculate the purchase price of the sweater.

Answer 1

Let the cost price of the sweater be x.

When it is sold at a 5% loss, the selling price is:

= 0.95x

If it is sold at a profit of 15% the selling price will be :

= 1.15x

This equals to 260 more than 0.95x

Equating the two :

0.95x + 260 = 1.15x

260 = 0.2x

x = 260/0.2

x = 1300

The purchase price is thus :

= 1300