A person sells pencil at a profit of 30 percent. If he reduces its selling price by Rs. 200, then he suffers a loss of 10 percent. What was the initial selling price of the pencil?

Correct option is B

Given:
Profit = 30%; Loss = 10% when SP is reduced by Rs. 200.
Formula Used:

​$$\text{SP} = \text{CP} \times \left(1 + \frac{\text{Profit}}{100}\right) \\\text{Reduced SP} = \text{CP} \times \left(1 - \frac{\text{Loss}}{100}\right)$$​​
Solution:
Let CP = x
​$$\text{SP} = x \times \left(1 + \frac{30}{100}\right) = 1.3x \\\text{Reduced SP} = x \times \left(1 - \frac{10}{100}\right) = 0.9x$$​​
Given 1.3x - 0.9x = 200
0.4x = 200
x = 500
SP = 1.3 × 500 = Rs. 650
Answer: (b) Rs. 650