A sold a mobile phone to B at a gain of 25% and B sold it to C at a loss of 10%. If C paid Rs. 5,625 for it, how much did A pay (in Rs) for the phone?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 5,000
Let the cost price of mobile phone for A = 200x
Now he sold it to B on profit of 25%, hence A sold it for = 200 + 1/4 of 200 = 200 + 50 = 250x
Now B sold it to C on loss of 10%, hence B sold it for = 250 - 1/10 of 250 = 250 - 25 = 225x
Now according to question,
⇒ 225x = Rs. 5625
⇒ x = 5625/225 = 25
Hence A paid for it = 200x = 200 × 25 = Rs. 5000