A retailer suffered a financial loss of ₹200 upon selling a product. Given that this loss represented 8% of the initial cost, determine the cost price of the product.

Correct Answer: ₹2,500

Step-by-Step Explanation:

1. Understand the given information:
Financial loss incurred by the retailer = ₹200
Percentage of loss on the initial cost (Cost Price) = 8%

2. Formulate the relationship between Cost Price and Loss:
Loss is calculated as a percentage of the Cost Price (CP). Therefore,

$\text{Loss}=8\%\text{ of }\text{Cost Price (CP)}$

3. Set up the equation:

$200=\frac{8}{100}\times \text{CP}$

4. Solve for the Cost Price (CP):
Rearranging the formula to isolate CP:

$\text{CP}=\frac{200\times 100}{8}$

$\text{CP}=25\times 100$

$\text{CP}=2500$

Thus, the cost price of the product is ₹2,500.