Problem: An item was sold at 6% profit. If the cost was 4% less and the selling price was Tk. 4 more selling. Then the trader would have made a profit of 12.5%. What was the cost of the item?
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Correct Answer: TK 200
Explanation:
1n 6% profit, the selling price = 100 + 6 = Tk. 106& 4% less, the cost of the item = 100 — 4 = Tk. 96
Again, in 12.5% profit the selling price = (96 + $\frac{96 \cdot 12.5}{100}$)= Tk. 108
Difference between selling price = 108 — 106 = Tk. 2
1n difference Tk. 2 the cost = Tk. 100
In difference Tk. 4 the cost = Tk. $\frac{100 \cdot 4}{2}$
= Tk. 200