Let the cost of the horse be x. The person sold the horse for x + 120 and made a profit of 2/7x. According to the question, the profit made is equal to 2/7 of the cost, so we have the equation (x + 120) - x = 2/7x. Simplifying this equation, we get 120 = 2/7x. Multiplying both sides by 7/2, we find x = 420. Therefore, the cost of the horse is Rs. 420.
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