A sells an article to B at 10% profit. B sells it to C at 25% profit. If C pays Rs.6,875 for it, then the price at which A bought it is:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. Rs.5,000.
A sells an article to B at 10% profit.
B sells it to C at 25% profit and C pays ₹6,875 for it.
Selling price = [(100 + profit)/100] × cost price
Let the price at which A bought the article be x.
A sold it at a profit of 10%, then B sold it at 25% profit to C for Rs. 6875.
ATQ -
(125/100)(110/100)x = 6875
x = 68750000/13750 = Rs. 5000