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A trader sold a cycle at a loss of 10%. If the selling price had been

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Intern
Joined: 25 Jan 2016
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Location: India
GMAT 1: 680 Q50 V31
GPA: 3.5
WE: Engineering (Energy and Utilities)
A trader sold a cycle at a loss of 10%. If the selling price had been  [#permalink]

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23 Jun 2017, 13:57
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Difficulty:

25% (medium)

Question Stats:

79% (02:10) correct 21% (02:28) wrong based on 89 sessions

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A trader sold a bike at a loss of 10%. If the selling price had been increased by $200, there would have been a gain of 6%. The cost price of the bike is A)$1200
B) $1205 C)$1250
D) $1275 E)$1305
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Joined: 04 Dec 2015
Posts: 750
Location: India
Concentration: Technology, Strategy
Schools: ISB '19, IIMA , IIMB, XLRI
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Re: A trader sold a cycle at a loss of 10%. If the selling price had been  [#permalink]

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23 Jun 2017, 14:18
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2
aveek86 wrote:
A trader sold a bike at a loss of 10%. If the selling price had been increased by $200, there would have been a gain of 6%. The cost price of the bike is A)$1200
B) $1205 C)$1250
D) $1275 E)$1305

Let Cost price of bike be $$= x$$

Selling price of bike is at loss of 10% = 90% of x $$= \frac{90}{100} * x = 0.9x$$

If selling price had been increased by $200, would gain of 6% = 106% of x $$= 0.9x + 200 ==> \frac{106}{100} * x = 0.9x + 200$$ $$1.06x = 0.9x + 200$$ $$1.06x - 0.9x = 200$$ $$0.16x = 200$$ $$x = \frac{200}{0.16} = \frac{200 * 100}{16} = 1250$$ . Answer (C)... Senior PS Moderator Joined: 26 Feb 2016 Posts: 3386 Location: India GPA: 3.12 Re: A trader sold a cycle at a loss of 10%. If the selling price had been [#permalink] Show Tags 23 Jun 2017, 14:18 Went by options. Started with C If the price of bike is 1250$, the price after loss(10%) will be 1125$. However, if he sold the bike at 200$ more, the new price would be 1325, which is 6% of the cost (hence making it a gain)

Option C is our correct answer!

Method 2 (Algebraic method)

Let price of bike be x

.9x + 200 = 1.06x
200 = .16x
(200 * 100)/16 = x
x = 50*25 = 1250(Option C)
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Re: A trader sold a cycle at a loss of 10%. If the selling price had been  [#permalink]

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23 Jun 2017, 14:23
The question is 0.9x + 200 = 1.06x

On solving x is 1250
Hence C

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Luckisnoexcuse
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Re: A trader sold a cycle at a loss of 10%. If the selling price had been  [#permalink]

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10 Aug 2017, 14:07
Can someone explain the basic concept of calculating gain or loss? Although it's apparently quite easy to understand, I still had difficulty in making sense of it in this question in terms of its calculation.
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Joined: 16 Oct 2010
Posts: 9125
Location: Pune, India
Re: A trader sold a cycle at a loss of 10%. If the selling price had been  [#permalink]

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11 Aug 2017, 00:36
aveek86 wrote:
A trader sold a bike at a loss of 10%. If the selling price had been increased by $200, there would have been a gain of 6%. The cost price of the bike is A)$1200
B) $1205 C)$1250
D) $1275 E)$1305

$200 is equivalent to 16% of the cost price because it converts 10% loss to 6% gain. 200 = (16/100)*Cost price Cost price =$1250

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Karishma
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Veritas Prep GMAT Instructor
Joined: 16 Oct 2010
Posts: 9125
Location: Pune, India
Re: A trader sold a cycle at a loss of 10%. If the selling price had been  [#permalink]

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11 Aug 2017, 00:43
TheMastermind wrote:
Can someone explain the basic concept of calculating gain or loss? Although it's apparently quite easy to understand, I still had difficulty in making sense of it in this question in terms of its calculation.

Profit( or Loss) = Selling Price - Cost Price

Profit (or Loss) % = [Profit (or Loss) / Cost Price] * 100
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Karishma
Veritas Prep GMAT Instructor

Re: A trader sold a cycle at a loss of 10%. If the selling price had been   [#permalink] 11 Aug 2017, 00:43
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