If a man reduces the selling price of a fan from Tk. 400 to Tk. 380, his loss increase by 2%. The cost price of the fan is:

Question: If a man reduces the selling price of a fan from Tk. 400 to Tk. 380, his loss increase by 2%. The cost price of the fan is:

Solution:
Difference in Selling Price = 400 - 380 = 20 Tk.
Increase in Loss Percentage = 2%

Since loss is calculated on Cost Price (CP), we can say:
2% of CP = 20 Tk.
⇒ (2/100) × CP = 20
⇒ CP = (20 × 100)/2
⇒ CP = 1000 Tk.

∴ The cost price of the fan is 1,000 Tk.