Kanchan bought a ring and sold it to Mohan at a profit of 5%. Mohan sold it to Pramod at a loss of 25%. If Pramod paid ₹3150, then the cost price (in ₹) of the ring Kanchan bought is
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Correct answer: A
Explanation
The correct answer is option 1 i.e. 4000 .
Let Kanchan’s cost price = x
Kanchan sold to Mohan at 5% profit → Selling price = x × 1.05
Mohan sold to Pramod at 25% loss → Selling price = 1.05x × 0.75 = 0.7875x
Pramod paid = 3150
0.7875x = 3150
x = 3150 ÷ 0.7875 = 4000