Given:
Selling price of a machine = 7000/-
Gross loss = 20%.
To find:
The cost and gross loss.
Solution:
Let x be the cost of machine.
According to the question,
[tex]x-20\%\text{ of }x=7000[/tex]
[tex]x-\dfrac{20}{100}x=7000[/tex]
[tex]x-0.2x=7000[/tex]
[tex]0.8x=7000[/tex]
Divide both sides by 0.8.
[tex]x=\dfrac{7000}{0.8}[/tex]
[tex]x=8750[/tex]
So, the cost of the machine is 8750/-.
Now,
[tex]\text{Gross Loss}=\text{Cost}-\text{Selling price}[/tex]
[tex]\text{Gross Loss}=8750-7000[/tex]
[tex]\text{Gross Loss}=1750[/tex]
Therefore, the gross loss is 1750/-.
