# A radio is sold at a gain of 16%. If it had been sold for Rs.20 more

A radio is sold at a gain of 16%. If it had been sold for Rs.20 more, 20% would have been gained. The cost price of the radio is:

- Rs. 350
- Rs. 400
- Rs. 500
- Rs. 600

**Answer: (3) Rs. 500**

**Solution:-**

Le the cost price of a radio be X.

A radio is sold at a gain of 16%. If it had been sold for Rs. 20 more, 20% would have been gained.

Then, (20 – 16) x X/100 = 20

X x 4/100 = 20

X /25 = 20

X = 20 x 25

X = 500

Then, the cost price of a radio is Rs. 500.

Hence, the correct answer is option (3) Rs. 500.