pen was sold at profit of10%.ifc.p 5% less and sold for Rs.7 more,gain would be20%,find c.p of pen?

Question

question is related to profit and loss and give the steps to solve this question

Answer 1

Cost of pen is P.

Sold at 1.10P (10% more). There is an ambiguity in the question, hence two solutions:

(1) If cp 5% less than P, then it would have cost 0.95P; if sold at R7 more: 0.95P*1.2 (20% more than 0.95P)-0.95P=7.

0.95P(1.2-1)=7; 0.95*0.2P=7, P=7/0.19=R36.84.

(2) If cp 5% less than 1.10P then the new cp would be 0.95*1.10P=1.045P.

If sold at R7 more, 1.045P*0.2=7, P=7/0.209=R33.49.