A sold an article to B at a loss of 12%. B sold it to C at a profit of 20%. If C paid βΉ1,122 to B, find the cost price of the article for A.
- AOption (a)
βΉ999.70
- BOption (b)
βΉ1,062.50
- COption (c)
βΉ1,038.80
- DOption (d)
βΉ985.30
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Correct answer
βΉ1,062.50
Why this answer is correct
Shortcut Trick
Successive multiplier = (1 β 0.12) Γ (1 + 0.20) = 0.88 Γ 1.2 = 1.056.
Let Cost Price of A be x.
x Γ 1.056 = 1,122.
x = 1,122 Γ· 1.056 = 1,062.50.
β΄ The correct answer is βΉ1,062.50.
Alternate Method
Given: Loss % (A to B) = 12%, Profit % (B to C) = 20%, Amount paid by C = βΉ1,122.
Formula: CP = SP Γ· [(1 Β± R1/100) Γ (1 Β± R2/100)]
β Let CP for A = x
β SP for A (which is CP for B) = x Γ (100 β 12) / 100 = 0.88x
β SP for B (which is CP for C) = 0.88x Γ (100 + 20) / 100
β 1,122 = 0.88x Γ 1.20
β 1,122 = 1.056x
β x = 1,122 / 1.056
β x = 1,062.50
β΄ The correct answer is βΉ1,062.50.
Additional Information
Successive Percentage Change
Net percentage change for two successive changes of a% and b% is given by [a + b + (ab/100)]%.
Cost Price Formula
To find CP when SP and Profit% are given: CP = [SP Γ 100] Γ· [100 + Profit%]. For loss, replace + with β.
Ratio Method
Convert percentages to fractions: 12% loss = 22/25 multiplier; 20% profit = 6/5 multiplier. Initial CP = Final SP Γ (25/22) Γ (5/6).