Question

Radha sold a watch at a profit of 12.5%. If she had sold it for Rs.50 more, then profit would have been 15%. The initial selling price (in Rs) of the watch is:
1. 2,250
2. 2,000
3. 1,125
4. 1,000

Answer 1

Correct Answer - Option 1 : 2,250

Given:

Radha sold a watch at a profit of 12.5%.

Let the Cost Price of a watch (C.P) will be Rs 100a

and Radha sold a watch at 12.5%

Formula used:

Profit % = (SP – CP) × 100/CP

Calculation:

Selling Price of a watch (S.P) = 100a × 112.5/100

⇒ 112.5a

If she had sold it for Rs.50 more , then profit had been 15%

S.P + 50 = C.P × (100 + Profit)/100

⇒ S.P + 50 = 100a × (115/100)

⇒ 112.5a + 50 = 115a

⇒ 115a – 112.5a = 50

⇒ 2.5a = 50

⇒ a = Rs. 20

So, the initial Selling Price (S.P) of a watch = 112.5a

⇒ 112.5 × Rs.20 = Rs.2250

∴ The initial Selling Price of a watch is Rs.2250.