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Question
Raju sells a watch at a 5% profit. Had he sold it for Rs.24 more; he would have gained 11%. Find the cost price of the watch.
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Solution
Let C.P. of the watch = Rs.100
When profit = 5%; S.P. = Rs.(100+5) = Rs.105
When profit = 11%;
S.P. = Rs.(100 + 11) = Rs .111
Difference of two selling prices = Rs. 111 – Rs. 105 = Rs.6
When watch sold for Rs.6 more; then C.P. of the watch = Rs.100
When watch sold for Re. 1 more; then C.P. of the watch = Rs.`100/6`
When watch sold for Rs.24 more; then C.P. of the watch = Rs.`100/6xx24`
= Rs.400
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