Shikha sells a bookshelf to Vansh at a loss of 5%, Vansh sells the same bookshelf to Swarnima at a profit of 10%, and Swarnima sells the same bookshelf to Nikhil at a loss of 20%. If Nikhil purchased the bookshelf for ₹16,720, then what was the cost (in ₹) of the bookshelf for Shikha?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e 20,000.
Let the cost price for Shikha be x.
Selling Price for Shikha = x - 5% of x = 95% of x = 0.95x
Cost Price for Vansh = 0.95x
Selling Price = 0.95x + 10% of 0.95x = 1.10 × 0.95x = 1.045x
Cost Price for Swarnima = 1.045x
Selling Price = 1.045x - 20% of 1.045x = 80% of 1.045x = 0.80 × 1.045x = 0.836x
Now, Nikhil buys it for ₹16,720 ⇒ 0.836x = 16,720
⇒ x = 16,720 ÷ 0.836
⇒ x = ₹20,000