Madhya Pradesh Police Exam Model Paper 5

The selling price of an item at 20% loss = Rs. 1200
Concept used:
C.P = S.P × 100/(100 – L%)
S.P = C.P × (100 + P%)/100
Where,
C.P → Cost price
S.P → Selling price
L% → Loss%
P% → Profit%
Calculations:
$\mathit{C}.\mathit{P}=\mathit{S}.\mathit{P}\times 100/\left(100\mathit{–}\mathit{L}\%\right)$
$\Rightarrow \mathit{C}.\mathit{P}=1200\times 100/\left(100\mathit{–}20\right)$
$\Rightarrow \mathit{C}.\mathit{P}=1200\times 100/80$
$\Rightarrow \mathit{C}.\mathit{P}=1500$
S.P of the item for 5% profit.
$\mathit{S}.\mathit{P}=1500\times 105/100$
⇒ 1575
∴ The required selling price is Rs. 1575