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.
Answer & explanation
Correct answer: option 1
Effective profit % after 1st two profit = 20 + 25 + \(\frac{20 × 25}{100}\)
= 45 + \(\frac{500}{100}\)
= 45 + 5
= 50%
Let the 3rd profit% be x
So,
50 + x + \(\frac{50x}{100}\) = 65
⇒ 50 + x + \(\frac{x}{2}\) = 65
= \(\frac{100 + 2x + x}{2}\) = 65
= 100 + 3x = 130
= 3x = 30
= x = 10
So, the third profit % = 10%
∴ The required answer is 10%.