Question

By selling an item at INR 2000, you incur a loss of 25%. At what price (in INR, approximately) should you have sold it to make a profit of 20%?

• A. 3199
• B. 3000
• C. 4000
• D. 3500

Hint:

In profit and loss problems, always first convert percentage loss or profit into a fraction of the cost price, then calculate the required selling price.

Answer 1

The Correct Option is A

Step 1: Find the cost price of the item.
A loss of 25% means the selling price is 75% of the cost price.
Let the cost price be \( CP \).
\[ 0.75 \times CP = 2000 \]
\[ CP = \frac{2000}{0.75} = 2666.67 \text{ (approximately)} \]
Step 2: Calculate the selling price for a 20% profit.
For a profit of 20%, the selling price should be 120% of the cost price.
\[ SP = 1.2 \times 2666.67 = 3200 \]
Step 3: Match with the given options.
The calculated selling price is INR 3200.
Since 3200 is not exactly given in the options, the closest approximate value is 3199.
Step 4: Conclusion.
The item should have been sold at approximately INR 3199 to make a profit of 20%.