AMC 8 Question

The clock in Sri's car, which is not accurate, gains time at a constant rate. One day as he begins shopping, he notes that his car clock and his watch (which is accurate) both say 12:00 noon. When he is done shopping, his watch says 12:30 and his car clock says 12:35. Later that day, Sri loses his watch. He looks at his car clock and it says 7:00. What is the actual time?

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Answer:

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