Peter brought a scooter for a certain sum of money. He spent 10% of the cost on repairs and sold the scooter for a profit of $ 1100. How much did he spend on repairs if he made a profit of 20%? Choose the correct answer.
A) 100 B) 200 C) 300 D) 400 E) 500

Rationale: e 500 let the c . p . be $ x . then , 20 % of x = 1100 20 / 100 * x = 1100 = > x = 5500 c . p . = $ 5500 , expenditure on repairs = 10 % actual price = $ ( 100 * 5500 ) / 110 = $ 5000 expenditures on repairs = ( 5500 - 5000 ) = $ 500 .
Answer: E