P sold a lamp to Q add a profit of 20%. Later, Q sold the same lamp to P at a profit of 30%, thereby making a profit of ₹ 108. How much (in ₹) did P pay originally for the lamp?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 300.
Calculations:
Let the cost price of article for P be x
P sells to Q at a profit of 20%
Selling price of P = 120% of x = 1.2x
Selling price of P = Cost price of Q
Q had a profit of 30%
Selling price for Q = 130% of 1.2x = 1.56x
Q makes a profit of 108
⇒ 1.56x - 1.2x = 108
⇒ .36x = 108
⇒ x = 300