When a plot is sold for Rs. 18,700, the owner loses 10%. At what price must that plot be sold in order to gain 10%?
A. Rs. 21,000
B. Rs. 20,778
C. Rs. 22,856
D. Rs. 25,900
Explanation:
MCQ: Selling Price for Gaining 10%
To find the selling price at which the owner must sell the plot in order to gain 10%, we can follow these steps:
Step 1: Calculate the original cost or value of the plot.
Since the owner sold the plot for Rs. 18,700 and incurred a loss of 10%, we can find the original cost (or value) of the plot using the formula:
Original Cost = Selling Price / (1 – Loss Percentage)
Original Cost = Rs. 18,700 / (1 – 0.10)
Original Cost = Rs. 18,700 / 0.90
Original Cost = Rs. 20,778.78
Step 2: Find the selling price that includes a 10% gain on the original cost.
Now, to find the selling price that includes a 10% gain on the original cost, we use the formula:
Selling Price = Original Cost + (Original Cost × Gain Percentage)
Selling Price = Rs. 20,778.78 + (Rs. 20,778.78 × 0.10)
Selling Price = Rs. 20,778.78 + Rs. 2,077.88
Selling Price = Rs. 22,856.66
Therefore, the plot must be sold at Rs. 22,856.66 in order to gain 10%.
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