# Q. A person bought a car and sold it for Rs. 3, 00,000. If he incurred a loss of 20%, then how much did he spend to buy the car?

(a) Rs. 3,60,000

(b) Rs. 3,65,000

(c) Rs. 3,70,000

(d) Rs. 3,75,000

Correct Answer: (d) Rs. 3,75,000

#### Question from UPSC Prelims 2020 CSAT Paper

**Explanation :**

## Car’s Cost Price

Let’s solve this problem step by step. The person sold the car for Rs. 3,00,000 and incurred a loss of 20%. This means that the selling price of the car is 80% of its cost price.

We can represent the cost price of the car as x. Since the selling price is 80% of the cost price, we can write an equation: 0.8x = 3,00,000.

Solving for x, we find that x = (3,00,000) / (0.8) = Rs. 3,75,000.

So (d) Rs. 3,75,000 is indeed the correct answer.