An article is sold for Rs. 1980 at 10% profit. What is the cost price?

Options

A. Rs. 198
B. Rs. 1800
C. Rs. 1900
D. Rs. 1600

Answer

To find the cost price (CP) of the article sold for Rs. 1980 at a 10% profit, we can follow these steps:

### Step-by-Step Solution:

1. **Identify the Selling Price (SP) and Profit Percentage**:
- Selling Price (SP) = Rs. 1980
- Profit Percentage = 10%

2. **Use the Formula to Calculate Cost Price (CP)**:
The formula to calculate the cost price when the selling price and profit percentage are known is:
\[ CP = \frac{100}{100 + \text{Profit Percentage}} \times SP \]

3. **Substitute the Values into the Formula**:
\[ CP = \frac{100}{100 + 10} \times 1980 \]
\[ CP = \frac{100}{110} \times 1980 \]

4. **Simplify the Fraction**:
\[ CP = \frac{10}{11} \times 1980 \]

5. **Calculate the Cost Price**:
- First, calculate \(1980 \div 11\):
\[ 1980 \div 11 = 180 \]
- Now, multiply by 10:
\[ CP = 10 \times 180 = 1800 \]

6. **Final Answer**:
The cost price of the article is Rs. 1800.

### Summary:
- Cost Price (CP) = Rs. 1800