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Raj decided to increase the cost of the table by 20%. The previous year, one table cost Rs. 1,000 and one chairs cost Rs. 500. If now, while selling one table and three chairs Raj gets Rs. 900 more than last year. What is the rate of increase in the cost of a chair?

Raj decided to increase the cost of the table by 20%. The previous year, one table cost Rs. 1,000 and one chairs cost Rs. 500. If now, while selling one table and three chairs Raj gets Rs. 900 more than last year. What is the rate of increase in the cost of a chair? Correct Answer 44%

Given:

Cost of table previous year = Rs. 1,000

Cost of chair previous year = Rs. 500

Percentage increase in the cost of one table = 20%

Profit Raj earned this year for selling one table and three chairs = Rs. 900

Concept used:

The total extra amount he got = increase in the cost of table + 3 × increase in the cost of the chair

Calculation:

The cost of the table increased by 20%.

Amount increased = 20% × 1,200

Amount increased = Rs. 240

Let us say the cost of the chair increased by x%.

Then new cost of one chair = 500 + x% × 500

cost of one chair this year = 500 + 5x

So, Raj gets Rs. 5x extra for each chair he sells this year.

Total amount he gets extra this year = 20% of Table + 3 × 5x from chair

Total extra amount, 900 = 240 + 15x

⇒ 660 = 15x

⇒ x = 44

Percentage increase in each chair, x% = 44%

∴ The cost of one chair was increased by 44% this year.

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