Rajiv sells a book to Mohan at a profit of 9% and Mohan sells it to Gopal at a profit of 13%. If Gopal pays Rs 12,317 for it. Find the cost price for Rajiv.
Answer & explanation
Correct answer: option 4
Let the cost price of book be 100 units.
Rajiv sells it to Mohan at 9% profit,
Thus selling price = 109 units
Mohan again sells it to Gopal at 13% profit,
Selling price for this transaction = $\frac{113}{100}$ x 109 = $\frac{113 \times 109}{100}$ units = 12317/100 units
According to the question, this is equal to Rs 12,317
Using unitary method,
1 unit = Rs 100
Thus, 100 units = Rs 10,000
Cost price for Rajiv = Rs 10,000