A man buy two watches at Rs.4000. He sold one watch at 20% profit and second at 10% loss. In this transaction the overall profit will be 5%.Find the cost price of first watch.
- AOption (a)
Rs.2000
- BOption (b)
Rs.3000
- COption (c)
Rs.2500
- DOption (d)
Rs.2300
- EOption (e)
Rs.2400
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Correct answer
Rs.2000
Why this answer is correct
Given
A man buy two watches at Rs.4000
He sold one watch at 20% profit and second at 10% loss.
The overall profit or loss will be 5%
Formula used
CP(1 + P/100) = SP
CP(1 - L/100) = SP
SP = Selling Price
CP = Cost Price
P = Profit
L = Loss
Calculation
Let CP of first watch be Rs.x, then CP of second watch be Rs.(4000 - x)
⇒ Total Selling Price = 4000 × 105 /100
⇒ 4200
⇒ According to question
⇒ x × 120/100 + (4000 - x) × 90/100 = 4200
⇒ 12x/10 + 3600 - 9x/10 = 4200
⇒ 3x/10 = 600
⇒ x = (600 × 10)/3
⇒ x = Rs.2000
∴ Cost price of first watch be Rs.2000
Alternate Method
(1 + 1) unit = 4000
2 unit = 4000
1 unit = 2000
Cost price of each watch is Rs.2000