On selling a chair for ₹720, a man gains 20%. The cost price of the chair is

Options

A. `₹864`
B. `₹600`
C. `₹650`
D. `₹620`

Answer

To find the cost price of the chair when it is sold for ₹720 with a gain of 20%, we can follow these steps:

### Step 1: Understand the relationship between Selling Price (SP), Cost Price (CP), and Gain Percentage.
The formula to find the Cost Price when you know the Selling Price and Gain Percentage is:
\[ CP = \frac{100}{100 + \text{Gain Percentage}} \times SP \]

### Step 2: Substitute the known values into the formula.
Here, the Selling Price (SP) is ₹720 and the Gain Percentage is 20%. So we substitute these values into the formula:
\[ CP = \frac{100}{100 + 20} \times 720 \]

### Step 3: Simplify the equation.
Calculate \(100 + 20\):
\[ CP = \frac{100}{120} \times 720 \]

### Step 4: Simplify \(\frac{100}{120}\).
This fraction can be simplified:
\[ \frac{100}{120} = \frac{5}{6} \]
So now we have:
\[ CP = \frac{5}{6} \times 720 \]

### Step 5: Calculate the Cost Price.
Now, multiply:
\[ CP = 5 \times 120 = 600 \]
So, the Cost Price (CP) of the chair is ₹600.

### Final Answer:
The cost price of the chair is ₹600.

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