A watch when sold at a profit of 25/4% yields. Rs 70 more than when it is sold at a loss 25/4%. Find the cost price of the watch.

Dear student,

Let the cost price of the watch be x

25/4 profit means 6.25 %
or, 6.25/ 100 of x
0.0625x profit

So, price at which it will be sold at a profit of 25/4% = x + 0.0625x = (1+0.0625)*x


Now,same applies to the loss 
25/4 loss means 6.25 %
or, 6.25/ 100 of x
0.0625x loss

Again, 
So, price at which it will be sold at a loss of 25/4% = x - 0.0625x = (1-0.0625)*x


so we are given that the difference is 70 rupees.
So,
(1+0.062)*x- ( 1-0.062)*x = 70
Or, 1.0625x - 0.9375x = 70
Or, 0.125x = 70
Or, x=70/0.125
Or, x= 560

Therefore, cost price = 560

Regards

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