A watch is sold at a profit of 20%. If both the cost price and the se…

Question

A watch is sold at a profit of 20%. If both the cost price and the selling price of the watch are decreased by Rs. 100, the profit would be 5% more. Original cost price of the watch is -

Accepted Answer

Option B. Rs. 500. Answer & Solution Answer: Option B Solution: & Let C .P . be Rs . x & Profit = 20\% & S .P . = 120\% of Rs . x & \,\,\,\,\,\,\,\,\,\,\,\, = Rs . 6x5 & New C .P . = Rs. ( x - 100 ) & New S .P . = Rs. ( 6x5 - 100 ) & Profit = & Rs. [ ( 6x5 - 100 ) - ( x - 100 ) ] & = Rs.x/5 & x/5…