A trader sells an article to A at 20% profit. A then sells to B at 10% loss. B sells to C at 5% profit. If C pays ₹1,134, what was the original cost price of the article (the trader’s CP)?
Show answer & explanation
Correct answer: B
Explanation
Given:
Merchant → A: 20% profit
A → B: 10% loss
B → C: 5% profit
Paid by C = ₹1134
By the formula:
New price = Old price × (1 ± percent/100)
Let the merchant's purchase price = x
Selling price to A = x × 1.20
Selling price to B = 1.20x × 0.90 = 1.08x
Selling price to C = 1.08x × 1.05 = 1.134x
1.134x = 1134
x = 1000
Original purchase price of the item = ₹1000