A person bought a car and sold it for Rs. 3,00,000

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?

Answer: D

Method I:

Let CP be Rs. x

SP of car = Rs. 3,00,000

Loss percent = 20%

80% of x = 3,00,000

x = 300000 x (100/80)

x = Rs. 3,75,000

Method II:

Loss of 20%, means SP is 20% less than CP.

It means CP must be 25% more than SP.

So, CP = SP + 25% of SP

= 3,00,000 + 25% of 3,00,000

= 3,00,000 + 75,000

= Rs. 3,75,000