QUESTION

CSAT

Medium

Maths

Prelims 2020

A person bought a car and sold it for Rs. $3,00,000$ . If he incurred a loss of $20\%$ , then how much did he spend to buy the car?

Select an option to attempt

Explanation

Method I: Let the Cost Price (CP) be Rs. $x$ . The Selling Price (SP) of the car = Rs. $3,00,000$ , and the loss percent = $20\%$ . Therefore, $80\%$ of $x = 300000$ , which implies: $x = 300000 \times (\frac{100}{80})$ , $x$ = Rs. $3,75,000$ .

Method II: A $20\%$ loss means the Selling Price (SP) is $20\%$ less than the Cost Price (CP). So, CP must be $25\%$ more than SP. Thus, CP = SP + $25\%$ of SP = $300000 + 25\%$ of $300000 = 300000 + 75000$ = Rs. $3,75,000$ .