A watch was sold at a loss of 9%. It was observed that if the selling price…

Step-by-Step Solution

To find the actual selling price, we first determine the cost price of the watch.

1. Understand the relationship between the two scenarios:

   • Initial loss = 9% of Cost Price (CP)

   • Final profit = 5% of CP

   • The difference in selling price is Rs. 420.

   • This difference is equal to the gap between -9% and +5%, which is 5% - (-9%) = 14% of the CP.

2. Calculate the Cost Price (CP):

   • 14% of CP = 420

   • 0.14 * CP = 420

   • CP = 420 / 0.14

   • CP = 42000 / 14 = Rs. 3000

3. Calculate the actual (initial) Selling Price:

   • The watch was sold at a 9% loss.

   • Selling Price = CP - (9% of CP)

   • Selling Price = 3000 - (0.09 * 3000)

   • Selling Price = 3000 - 270 = Rs. 2730