Question

Raju sells a watch at 5% profit. Had he sold it for Rs. 24 more; he would have gained 11%. Find the cost price of the watch.

Answer 1

For the first situation,
Profit % $=\frac{S.P.-C.P.}{C.P.}\times 100=5$
$=>S.P.-C.P.=0.05C.P.$
$=>S.P.=1.05C.P$ --- (1)
For the second situation, Selling price $=Rs24+$ Selling price of 1st situation.
Cost price remains same
So, Profit % $=\frac{S.P.-C.P.}{C.P.}\times 100=11$
$=>\frac{(24+S.P.)-C.P.}{C.P.}\times 100=11$
$=>(24+S.P.)-C.P.=0.11C.P.$
$=>S.P.=1.11C.P-24$ --- (2)
From, equations 1, 2
$1.05C.P.=1.11C.P-24$
$=>0.06C.P.=24$
$C.P.=Rs400$
Thus, cost price of the watch $=Rs400$