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A watch was sold at a profit of 15%. If ...

A watch was sold at a profit of 15%. If its cost had been 5% less and it had been sold for 21 less, then the profit would have been 10%. Find the cost price of the watch

A

Rs 400

B

Rs 190

C

Rs 200

D

None of these

Text Solution

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The correct Answer is:
To find the cost price of the watch, we will set up the problem using algebra. Let's denote the cost price of the watch as \( CP \). ### Step 1: Establish the Selling Price with 15% Profit The selling price (SP) when the watch is sold at a profit of 15% can be calculated as: \[ SP = CP + 0.15 \times CP = 1.15 \times CP \] ### Step 2: Establish the New Cost Price and Selling Price According to the problem, if the cost price had been 5% less, the new cost price would be: \[ New \, CP = CP - 0.05 \times CP = 0.95 \times CP \] It is also stated that if the watch is sold for 21 less than the original selling price, the new selling price would be: \[ New \, SP = SP - 21 = 1.15 \times CP - 21 \] ### Step 3: Establish the Profit with New Selling Price With the new cost price, the profit is 10%. Therefore, we can express the new selling price in terms of the new cost price: \[ New \, SP = New \, CP + 0.10 \times New \, CP = 1.10 \times New \, CP \] Substituting the new cost price: \[ New \, SP = 1.10 \times (0.95 \times CP) = 1.045 \times CP \] ### Step 4: Set Up the Equation Now, we can set the two expressions for the new selling price equal to each other: \[ 1.15 \times CP - 21 = 1.045 \times CP \] ### Step 5: Solve for CP Rearranging the equation: \[ 1.15 \times CP - 1.045 \times CP = 21 \] \[ (1.15 - 1.045) \times CP = 21 \] \[ 0.105 \times CP = 21 \] Now, divide both sides by 0.105 to find \( CP \): \[ CP = \frac{21}{0.105} = 200 \] ### Conclusion Thus, the cost price of the watch is: \[ \boxed{200} \]
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UPKAR PUBLICATION -PRACTICE SET-5-PART-III (QUANTITIVE QPTITUDE)
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