A person bought a car and sold it for Rs 3,00,000. If he incurred a loss of 20%, then how much did he spend to buy the car?

Correct Option

The problem provides the selling price (SP) of a car as Rs 3,00,000 and states that a loss of 20% was incurred during the sale.

To determine the cost price (CP) of the car, we utilize the relationship between selling price, cost price, and loss percentage.

When a loss of 20% occurs, it signifies that the selling price is 100% - 20% = 80% of the cost price.

This can be expressed as: SP = 0.80 × CP.

Substituting the given selling price into the equation:

3,00,000 = 0.80 × CP

To find CP, rearrange the equation:

CP = 3,00,000 / 0.80

CP = (3,00,000 × 100) / 80

CP = 3,75,000

Therefore, the amount spent to buy the car (cost price) was Rs 3,75,000.

Incorrect Options

Options 1 (Rs 3,60,000), 2 (Rs 3,65,000), and 3 (Rs 3,70,000) are inconsistent with the calculated cost price of Rs 3,75,000. These values do not reflect a 20% loss when the selling price is Rs 3,00,000.