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

The correct option is ₹3,75,000.

Step 1: Understand the given information

Selling Price (SP) of the car = ₹3,00,000
Loss percentage = 20%

Step 2: Understand the relation between Cost Price and Selling Price

Let the Cost Price (CP) of the car be x.

Since the seller incurred a loss of 20%, the selling price represents 80% of the cost price (100% - 20% = 80%).

Step 3: Set up the equation

$\text{Selling Price}=\text{Cost Price}\times \left(1-\frac{\text{Loss \%}}{100}\right)$

Substituting the given values into the formula:

$\mathrm{3,00,000}=x\times \left(1-\frac{20}{100}\right)$

$\mathrm{3,00,000}=x\times \frac{80}{100}$

Step 4: Solve for the Cost Price (x)

$x=\frac{\mathrm{3,00,000}\times 100}{80}$

$x=\frac{\mathrm{30,00,000}}{8}$

$x=\mathrm{3,75,000}$

Conclusion:

The person spent ₹3,75,000 to buy the car.