Question

By reducing the selling price of an article by Rs 50, a gain of 5% turns into a loss of 5%. Find the original selling price of the article.​

Answer 1

Original selling price of the article is Rs. 525.

• Let the cost price of the article is x.

• The seller gains a profit of 5%.

• Therefore profit = 0.05x.

• Therefore, original selling price of the article is 1.05x.

• Now the selling price is reduced by Rs. 50.

Selling price = 1.05x -50.   (Equation 1)

• The seller incurs a loss of 5%.

Loss is equal to 0.05x.

• Selling price = Cost price - Loss = x - 0.05x = 0.95x.   (Equation 2)

• Now,

Equation 1 = Equation 2

1.05x - 50 = 0.95x

0.10x = 50

x = 500

• Cost price of the article is Rs. 500.

• Original selling price = 1.05x = 1.05 × 500 = Rs. 525