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A watch is sold at 16% profit. If this watch is bought at 10% less price and sold at a lower price of Rs. 14, then there is a profit of 25%. Find the
Question

A watch is sold at 16% profit. If this watch is bought at 10% less price and sold at a lower price of Rs. 14, then there is a profit of 25%. Find the cost price of a watch?

A.

Rs. 400

B.

Rs. 380

C.

Rs. 420

D.

Rs. 360

Correct option is A

Given
Initial Profit = 16 %
New CP = 90% of original CP
New SP = Original SP - 14
New Profit = 25%

Solution
Let Original CP = 100x
Original SP = 116x
New CP = 90x
New SP (with 25% profit) = 90x ×\times​ 1.25 = 112.5x
Difference in SP = 116x - 112.5x = 3.5x
Given Difference = Rs. 14
3.5x = 14
x = 4
Original CP = 100x = 400

Final Answer
So the correct answer is (a)

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