If a man were to sell his chair for Rs. 720, he would lose 25%. To gain 25% he should sell it for

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WEBCSC 05/2021 Common Official Paper (Morning Shift)
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  1. Rs. 1,200
  2. Rs. 1,000
  3. Rs. 960
  4. Rs. 900

Answer (Detailed Solution Below)

Option 1 : Rs. 1,200
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Detailed Solution

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Given:

Selling price at 25% loss = Rs. 720

Loss percentage = 25%

Gain percentage = 25%

Formula Used:

Cost Price (CP) = Selling Price (SP) / (1 - Loss Percentage)

Selling Price for Gain = Cost Price × (1 + Gain Percentage)

Calculation:

Let the Cost Price (CP) be x.

25% loss means Selling Price (SP) = 75% of CP

⇒ 720 = 75% of x

⇒ 720 = (75/100) × x

⇒ x = 720 / (75/100)

⇒ x = 720 × (100/75)

⇒ x = 720 × (4/3)

⇒ x = 960

To gain 25%, Selling Price (SP) = 125% of CP

⇒ SP = 125% of 960

⇒ SP = (125/100) × 960

⇒ SP = (5/4) × 960

⇒ SP = 1200

To gain 25%, he should sell it for Rs. 1200.

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