By selling a chair for `Rs1440,` a trader gains `20%.` Find the cost price of the chair.

Options

A. `Rs 1100`
B. `Rs 1200`
C. `Rs 1400`
D. `Rs 1300`

Answer

To find the cost price of the chair when it is sold for Rs 1440 with a profit of 20%, we can use the following steps:

### Step-by-Step Solution:

1. **Understand the Given Information:**
- Selling Price (SP) = Rs 1440
- Profit Percentage = 20%

2. **Use the Formula for Selling Price:**
The formula to calculate Selling Price when the Profit Percentage is known is:
\[ SP = CP + \text{Profit} \]
where CP is the Cost Price.

Profit can also be expressed in terms of Cost Price as:
\[ \text{Profit} = \frac{\text{Profit Percentage}}{100} \times CP \]

Therefore, we can rewrite the Selling Price formula as:
\[ SP = CP + \left(\frac{\text{Profit Percentage}}{100} \times CP\right) \]
Simplifying this gives:
\[ SP = CP \left(1 + \frac{\text{Profit Percentage}}{100}\right) \]

3. **Substitute the Values:**
Substitute the known values into the equation:
\[ 1440 = CP \left(1 + \frac{20}{100}\right) \]
This simplifies to:
\[ 1440 = CP \left(1 + 0.2\right) = CP \times 1.2 \]

4. **Isolate the Cost Price (CP):**
To find CP, rearrange the equation:
\[ CP = \frac{1440}{1.2} \]

5. **Calculate the Cost Price:**
Now perform the division:
\[ CP = \frac{1440}{1.2} = 1200 \]

6. **Conclusion:**
The cost price of the chair is Rs 1200.

### Final Answer:
The cost price of the chair is Rs 1200.