A person bought a car and sold it for ₹ 3,00,000. If he incurred a loss of 20%, then how much did he spend to buy the car?
Answer & explanation
Answer: (d) ₹ 3,75,000
A 20% loss means the selling price is 80% of the cost. So the cost is 3,00,000 ÷ 0·8 = ₹ 3,75,000.
- Selling price = 80% of cost price.
- Cost price = 3,00,000 ÷ 0·8 = ₹ 3,75,000.
- Check: 20% of 3,75,000 = 75,000, and 3,75,000 − 75,000 = 3,00,000.
Remember · Loss and profit percentages are on cost price: CP = SP ÷ (1 − loss%).
Question and answer: UPSC's official GS Paper II (2020, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·