An article when sold at a gain of 5% yields Rs.
Tech Mahindra technical mcq question, verified with a worked answer. Free to practise - no sign-up.
An article when sold at a gain of 5% yields Rs. 15 more than when sold at a loss of 5%. What is the cost price of the article?
Show answer & explanation
The difference between a 5% gain and a 5% loss is equivalent to a 10% difference in the cost price. Since this 10% difference equals Rs. 15, the total cost price (100%) is Rs. 150.
Step-by-step Derivation:
Step 1: Let the Cost Price (CP) of the article be x.
Step 2: Calculate the Selling Price (SP) for a gain of 5%: SP1 = CP + 5% of CP = 1.05x.
Step 3: Calculate the Selling Price (SP) for a loss of 5%: SP2 = CP - 5% of CP = 0.95x.
Step 4: According to the problem, the difference between these two selling prices is Rs. 15: SP1 - SP2 = 15.
Step 5: Substitute the values: 1.05x - 0.95x = 15.
Step 6: Simplify the equation: 0.10x = 15.
Step 7: Solve for x: x = 15 / 0.10 = 150.
Step 8: Therefore, the cost price of the article is Rs. 150.