P sold an article to Q at 11% profit and Q sold it to R at 11% loss. If R paid ₹19,758 for it, then at what price (in ₹) was the article purchased by P?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 20000.
Let the price at which P bought the article be x.
P sells to Q at 11% profit → Q’s price = x × 1.11
Q sells to R at 11% loss → R’s price = (Q’s price) × 0.89 = x × 1.11 × 0.89
Given, R paid ₹19,758:
x × 1.11 × 0.89 = 19,758
x × 0.9879 = 19,758
x = 19,758 ÷ 0.9879 ≈ 20,000