An article sold at a profit of 20% if both the cost price and selling price would be Rs.20/- the profit would be 10% more. What is the cost price of that article?
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Answer / Murli Manohar Manjul
Let C be the cost price, S be the selling price, and P be the original profit percentage (20%). Then, S = C * (1 + P) = C * (1 + 0.20). Given that the new profit is 10% more, the total profit now is C * (1 + P) * (1 + 0.10). We know that both profits add up to Rs. 20, so we can set up an equation: C * (1 + P) * (1 + 0.10) = C * (1 + P + 0.10), which simplifies to C * 1.3 = C * 1.2 + C * 0.2. Solving this equation gives us C = Rs. 26.67, but since the cost price must be an integer, we can round it up or down to the nearest integer values, i.e., Rs. 27 or Rs. 26.
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