Raman purchased an iron at a cost of ₹2,400 and sold it to Rohan at a loss of 8%. Rohan sold it to Soham at a gain of 12.5%. At what price should Soham sell the iron to gain 15%?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹2856.60.
Raman's cost price = ₹2400
Loss 8% → Rohan's cost price = 2400 × (1 - 0.08) = ₹2208
Rohan's gain 12.5% → Soham's cost price =
2208 × (1 + 12.5/100) = 2208 × 1.125 = ₹2484
Soham wants 15% gain → Selling price =
2484 × 1.15 = ₹2856.60