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Solutions
Given:
A sells an article to B at a 20% profit.
B sells the article to C at a 10% profit.
C sells to D at a Rs. 16 profit.
The difference between D's price and A's cost is Rs. 500.
Concept used:
The concept of profit = selling price - cost price.
Calculation:
Let’s consider the cost of the article for A as Rs. X.
⇒ A sells the article at a 20% profit
⇒ So, B’s cost = Rs. 1.20X
⇒ B sells the article to C at a 10% profit
⇒ So, C’s cost = Rs. 1.1 × 1.20X = 1.32X
⇒ The selling price for D = C’s cost + profit
⇒ Rs. (1.32X + 16)
According to the question,
D's price - A's cost = Rs. 500,
⇒ 1.32X + 16 - X = 500
⇒ 0.32X = 484
⇒ X = Rs. 1512.5
Amount B paid to A to buy the article is 1.20 × 1512.5 = Rs. 1815.
∴ B paid Rs. 1815 to A to buy the article.
Shortcut Trick
Let, CP of A = 100a
CP for B = 100a × 120/100 = 120a
CP for C = 120a × 110/100 = 132a
CP for D = 132a + 16
According to the question,
132a + 16 - 100a = 500
⇒ a = 484/32 = 121/8
CP for B = 120 × 121/8 = Rs. 1815