Word Problem 1
Problem 1: By selling a horse for Rs 75 a man would lose 4%. For what amount should he sell it to gain 20%?
First we need to know the cost price, which we will try to find by the help of given condition.
Let cost price (CP) = y
If he selling for loss then given;
Loss is 4% of CP
Using loss formula
But SP is Rs 75
20% Profit case
Now we have readily found the cost price of the horse i-e
CP = 78.125
If he wnat to earn Profit of 20 % (of cost price) then
P= 20% of CP
Now to find sale price for 20% profit we use profit formula
So to earn 20 % profit he will have to sell his horse for Rs 93.75.