Question

A person sells an article at 20% profit. Had he bought it at 20% less and sold it for Rs.180 less, he would have made a profit of 25%. If he sells this article for Rs. 976.50, then the profit/loss percentage is:
1. 8.5%, profit
2. 8%, profit
3. 9%, loss
4. 9.5%, loss

Answer 1

Correct Answer - Option 1 : 8.5%, profit

Given:

A person sells an article at a profit of 20%.

If he had bought it for 20% less and sold it for Rs.180 less, he would have profit 25%. 

Formula used:

Profit = SP - CP

Profit% = Profit/CP × 100

Loss = CP - SP

Loss% = Loss/CP × 100

Calculation:

Let the original CP of the article be Rs. x

Profit% = 20%

SP of the article = Rs. (120x/100)

⇒ 6x/5

If CP = 80x/100 = 4x/5

SP = (6x/5) - 180

Then gain% = 25%

⇒ (6x/5) - 180 = 125 × 4x /(5 × 100)

⇒ 6x/5 - x = 180

⇒ x = Rs. 900

Now, 

The original CP of the article = Rs. 900

The original SP of the article = Rs. 976.50

SP > CP, then,

Profit = Rs. (976.50 - 900) = Rs. 76.5

Profit % = (76.5 × 100)/900 = 8.5%

∴ The profit percentage is 8.5%.