A sold an item to B at 20% gain, B sold it to C at 8% gain. C sold it to D at 25% loss. If the difference between the profits of A and B is Rs 260, then D bought it for:
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Rs 2,430.
Let the CP of an item for A = 100x.
A sold the item at 20% gain to B,
SP of an item for A = CP of an item for B = 100x × 120% = 120x.
B sold the item to C at 8% gain.
CP of an item for C = 120x × 108% = 129.6x.
CP an item for D = 129.6 × 75% = 97.2x.
Difference of profit of A and B = 260
20x - 9.6x = 260
10.4x = 260
x = 25.
CP of an item for D = 97.2x = 97.2 × 25 = 2430.