Question

Find the Cost Price of Transistor
A dealer sells a transistor at a gain of 16%. If he sold it for 20 rupees more. He would have gained 20%. What is the cost price?

Answer 1

As per the conditions given in the statement, we can form two equations:

1) S.P. = 1.16(C.P.)
2) S.P. + 20 = 1.2(C.P.)    or    S.P. = 1.2(C.P.) - 20

Equating (1) and (2), we get:
1.16(C.P.) = 1.2(C.P.) - 20

Solving this we get 0.04(C.P.) = 20

This implies that C.P. = 20/0.04 = 500

Hence Cost Price of transistor will be Rs. 500