A bought a cycle and sold at a profit of ₹1,000. B sold it to C at 5% loss. C sold it to D for ₹10,450 at 10% profit. If D had bought the cycle directly from where A had bought, then how much amount (in ₹) would he have saved?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e.1,450.
Let A bought the cycle at ₹x
A sold at ₹(x + 1000) → B's cost
B sold at 5% loss → Selling price = 95% of (x + 1000)
C’s cost = 0.95 (x + 1000)
C sold to D at 10% profit → Selling price = 110% of C's cost
1.10 × 0.95 (x+1000) = 10450
1.045(x + 1000) = 10450
x = 9000
So, D paid ₹10,450 but original price was ₹9,000
Saved amount = ₹10,450 − ₹9,000 = ₹1,450