Question: Both A and B sells their watch at the rate of Rs. 5000 per watch. A earned a profit of 25 percent while B incurred a loss of 10 percent. What is the ratio of cost prices of A and B?

  1. 17:20
  2. 18:25
  3. 16:25
  4. 9:10

Answer: 2. 18:25

Solution:
Creating equations
25 percent profit at a sell of 5000
c.p of A= x
1.25x=5000
10 percent loss at a sell of 5000
c.p of B=y
y-0.1y=5000=0.9 y
ratio of A And B
x/y=5000(0.9)/(1.25 x5000)=9/12.5=90/125
=18/25

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