[Smart Math] Percentages Problem 14

Here’s and example of a SMART MATH problem for PERCENTAGES.

Problem

An article is sold at a profit of 20%. If both the cost price and selling price were to be $20 less, the profit made would be 10% more. What is the cost price of the article?

1. $30
2. $40
3. $50
4. $60
5. $70

The Usual Method

[contentblock id=google-adsense-post]

Let the cost price of the article be $x.

Hence selling price = 1.2x

Reduced cost price = (x – 20)

Reduced selling price = (1.2x – 20)

Hence, profit % = = 20% + 10% = 30%







= Cost price

(Ans: 4)

Estimated Time to arrive at the answer = 60 seconds.

Using Technique

[contentblock id=google-adsense-post]

As can be seen that by a reduction in cost price, there is an increase in profit %. The increase in profit % = %

So, for a 50% increase, there should be a 33.33% reduction in cost price (as explained in the Percentages section of Stuff to Remember)

Hence, the original cost price should be such that a reduction of $20 is equivalent to a reduction of 33.33%.

Hence, original cost price =

(Ans: 4)

Estimated Time to arrive at the answer = 10 seconds.
[starrater tpl=10]

[contentblock id=smartmath-blockquote]