A sold an article to B at 24% profit. B sold it to C at 30% profit. If B's profit was Rs. 72.60 more than that of A, then how much (in Rs.) did B pay for it?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 682
Given:
A sold an article to B at 24% profit.
B sold it to C at 30% profit.
B's profit was Rs. 72.60 more than that of A
Formula used:
Profit = Selling price - Cost price
Calculations:
Let the cost price of the article A be 100x
Selling price of A = Cost price of B = 124% of 100x = 124x
Profit of A = 124x - 100x = 24x
Selling price of B = 130% of 124x = 161.2x
Profit of B = 161.2x - 124x = 37.2x
Difference in profits of A and B = 37.2x - 24x = 13.2x
According to the question;
⇒ 13.2x = 72.6
⇒ x = 5.5
Cost price of B = 124x = 124 × 5.5 = Rs 682