Reshma sells a car for Tk. 4,20,000 at a gain of 5%. What is the cost of the car in Taka?

Question: Reshma sells a car for Tk. 4,20,000 at a gain of 5%. What is the cost of the car in Taka?

Solution:
Given that,
Selling Price (SP) = Tk. 4,20,000
Gain = 5%

Let the Cost Price (CP) be 100 Tk.
Then, Selling Price (SP) = 100 + 5 = 105 Tk.

According to the question,
If Selling Price is 105 Tk., then Cost Price is 100 Tk.
If Selling Price is 1 Tk., then Cost Price is (100/105) Tk.
If Selling Price is 4,20,000 Tk., then Cost Price is (100/105) × 4,20,000 Tk.
= 100 × 4,000 Tk.
= 4,00,000 Tk.

∴ The cost price of the car is 4,00,000 Taka