A sells an object to B at 10% profit, B sells it to C at 60% profit and C sells it to D at 12% profit. If D paid ₹59.40, then at what price did A buy it?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. ₹30.
Let the initial cost price be x
So,
Final Price = Initial Price × (1 + Profit/100)
Now,
The price at which A buys be Rs. x
Now,
Price after A's sale = x × 110/100 = 1.10x
Price after B's sale = 1.10x × 160/100 = 1.10x × 1.60
Price after C's sale = 1.10x × 1.60 × 1.125
D paid Rs. 59.40
So,
⇒ 1.10x × 1.60 × 1.125 = 59.40
⇒ 1.98x = 59.40
⇒ x = 59.40/1.98
⇒ x = 30
Thus, the price at which A bought is Rs. 30