Ramesh sold a phone at a loss of 5%. Had he sold it for Rs. 500 more, he would have gained 45%. To gain 25%, he should sell for:

Let the cost price (C.P.) of the phone be Rs. x.

Selling price (S.P.) of the phone = x – (5% of x) = x – 0.05x = 0.95x (? S.P. = C.P. – Loss)

If S.P. is Rs. 500 more: -

Gain% = 45%

⇒ Gain = 45% of x = 0.45x

S.P. of the phone = 0.95x + 500

⇒ x + 0.45x = 0.95x + 500 (? S.P. = C.P. + Gain)

⇒ 0.5x = 500

⇒ x = Rs. 1000

If gain is 25%: -

Cost price (C.P.) of the phone be Rs. 1000

⇒ S.P. of the phone = (1000 + 25% of 1000) = 1000 + 250 = Rs. 1250

∴ To gain 25%, he should sell for Rs. 1250.