Cost price after a 20% loss — Aptitude Question
Cost price after a 20% loss: An article sold at a loss of 20% fetched ₹480. What was the cost price? Answer and worked solution on CodeKairo.
- Topic: Profit & Loss
- Section: Quantitative Aptitude
- Difficulty: Easy
- Time target: 45 seconds
Question
An article sold at a loss of 20% fetched ₹480. What was the cost price?
Options
- ₹540
- ₹576
- ₹600
- ₹620
Show the answer and the worked solution
Correct answer: C. ₹600
Worked solution
- CP × 0.80 = 480.
- CP = 480 ÷ 0.80 = ₹600.
Answer: ₹600.
The idea
A 20% loss means the sale recovers 80% of the cost. Adding 20% to 480 gives 576 and is wrong, because the percentage is of the cost, not of the sale.
Shortcut. A 20% loss leaves 4/5 of the cost, so CP = 480 × 5/4: a quarter of 480 is 120, and 480 + 120 = 600.
Common trap. "₹576" — adding 20% of the ₹480 sale (96) instead of treating 480 as 80% of the cost.