Ketan bought a shirt and sold it to Mahesh at a 5% profit. Mahesh sold it to David at a loss of 24%. If David paid ₹3990, then what is the cost price (in ₹) of the shirt Ketan bought?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2, i.e., 5000.
Let the cost price of the shirt Ketan bought = ₹x
Ketan sold to Mahesh at 5% profit:
Selling price for Mahesh = x × (105 / 100)
Mahesh sold to David at 24% loss:
Selling price for David = x × (105 / 100) × (76 / 100)
Given David paid ₹3990:
x × (105 / 100) × (76 / 100) = 3990
x × (7980 / 10000) = 3990
x × 0.798 = 3990
x = 3990 / 0.798
x = 5000