Question

A contractor purchased a house and spent 30% of its cost price on repairs and painting. Then he sold the house for rupees 335,400, making a profit of 20%. At what price did the contractor purchase the house?

a) 215,000
b) 222,500
c) 225,000
d) 217,500

Answer 1

To find the purchase price of the house, calculate backwards from the selling price by subtracting the profit percentage. The house was purchased for approximately ₹279,500.

Step-by-step explanation:

To find the price at which the contractor purchased the house, we need to work backwards from the final selling price of ₹335,400. Since the contractor made a profit of 20%, the cost price of the house can be calculated as follows:

Profit % = 20%

Selling price = ₹335,400

Let the cost price of the house be ₹x.

Profit = Selling price - Cost price

20% of Cost price = ₹335,400 - Cost price

0.2 * x = ₹335,400 - x

0.2x + x = ₹335,400

1.2x = ₹335,400

x = ₹335,400 / 1.2

x ≈ ₹279,500

Therefore, the contractor purchased the house for approximately ₹279,500.