The price of some wooden furniture increases by 65% when it passes through three hands. If the first and second sellers made a profit of 20% and 25%, respectively, then find the profit percentage of the third seller
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 10%.
Given:
Total profit = 65%
Profit by first seller and second seller are 20% and 25%
Formula used:
Successive profit = P1 + P2 + (P1 × P2)/100
Calculation:
Effective profit % of 1st and 2nd profit = 20 + 25 + (20 × 25)/100
⇒ 45 + 500/100
⇒ 45 + 5 = 50%
Let the 3rd profit% be x
So, 50 + x + 50x/100 = 65
⇒ 50 + x + x/2 = 65
⇒ (100 + 2x + x)/2 = 65
⇒ 100 + 3x = 130
⇒ 3x = 30
⇒ x = 10
Hence, the third profit % = 10%