Ankit sells a chair at a loss of 25 percent. If he sells it for Rs. 900 more, then he earns a profit of 5 percent. What should be the selling price of the chair to earn a profit of 40 percent?

Correct option is D

Given:
Loss = 25%, Additional amount = Rs. 900, Profit = 5%
Formula Used:
​$$Selling \ Price = Cost \ Price \times \left(1 + \frac{Profit}{100}\right)$$​​
Solution:

Let the Initial Cost Price be 100x

So, after a loss of 25% then Selling Price = 100x - 25% of 100x = 75x

If we sell it 900 more, then we got a profit of 5% more

75x + 100 = 5% of 100x+ 100x

75x + 900 = 105x

30x = 900

x = 30

So, Cost Price = 100x = 100$$\times 30 = 3000$$ 

Selling Price at 40% profit = $$3000(1+\frac{40}{100})= Rs. 4200$$​​