A sells an item at 20% profit to B, B sells the same at 10% profit to C and receives Rs.1,32,000.0. Had C purchased the same item from A, he would have spent 5% less than what he spent with B. What profit would A have made then?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e Rs.25,400
| Understanding | Application |
| We need to use 100 as the base system to find the value using concepts of percentages. |
Let the orignal price be 100x. B bought at 20% profit which will be 120x. B bought at 20% profit which will be, ⇒ 120x × 1.1 = 132x In the question 132x = 132,000.0 rs. x = 1000 rs. C would be spent 5% less on the price of B, which would be. 132x × 0.95 = 125.4x A would make ⇒ 125.4x - 100x ⇒ 25.4x or 25400 rs. |