Avi sold a house to Bhargav at a gain of 10% and Bhargav sold it to Chetan at a gain of 20%. If Chetan paid ₹2,64,00,000 for it, then at what price must Avi have purchased it?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹2,00,00,000.
Given that
Avi sold a house to Bhargav at a gain of 10% and Bhargav sold it to Chetan at a gain of 20%
If Chetan paid ₹2,64,00,000 for it,
Selling price = Cost price × (100 + profit %)/100
According to the question
Bhargav sold the house to Chetan in ₹26400000
Bhargav purchased it in = ₹26400000 × (100/120) = ₹2,20,00,000
Avi sold to Bhargav in = ₹2,20,00,000
Hence, Avi purchased it in = ₹2,20,00,000 × (100/110) = ₹2,00,00,000