A profit earned when an item is sold for Rs. 4,000 is ten times the loss incurred when it is sold for Rs. 2,790. At what price should the item be sold if it is desired to make a profit of 20%?

Correct option is C

Given:
Profit earned when item is sold for Rs. 4000 is ten times the loss incurred when sold for Rs. 2790.
Find the selling price to earn 20% profit.
Formula Used:
​$$\text{Profit} = \text{SP} - \text{CP}, \quad \text{Loss} = \text{CP} - \text{SP}$$​​
Solution:
Let the cost price be CP.
According to the question:
4000 - CP = 10(CP - 2790)
4000 - CP = 10CP - 27900
4000 + 27900 = 11CP
31900 = 11CP
​$$\Rightarrow CP = 2900$$​​
To find SP for 20% profit
​$$\text{SP for 20\% profit} = \text{CP} + \frac{20}{100} \times \text{CP} = \text{CP} \times 1.2$$​​
​$$\text{SP} = 2900 \times 1.2 = 3480$$​​