A man sold his watch at a loss of 5%. Had he sold it for Rs. 56.25 more, he would have gained 10%. What is the cost price of the watch (in Rs.)?

Answer: Option C

He sold his watch at loss of 5%. If he sells his watch for Rs. 56.25 more, he would gain 10%. It means that
15% = Rs. 56.25.
So,
1% = $$\frac{56.25}{15}$$
100% = $$\frac{56.25\times 100}{15}$$   = Rs. 375
Therefore, the cost price of the watch is Rs. 375