Ravi sells a chair to Mohan at a profit 10% and Mohan sells it to Govind at profit 20%. If Govind pays Rs.1,320 for it. Then the cost price for Ravi is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. Rs.1,000.
| Understanding/Application |
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Amount paid by Govind = Rs. 1320 Amount Mohan got after selling chair at a profit of 20% = Rs. 1320 C.P. of the chair for Mohan = (1320 × 100)/120 = Rs. 1100 |
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Amount at which Ravi sold the chair after getting a profit of 10% = Rs. 1100 C.P. of the chair for Ravi = (1100 × 100)/110 = Rs. 1000 |