The price of a jewel, passing through three sellers, rises on the whole by 65%. If the first and the second sellers earned 20% and 25% profit respectively. The percentage profit earned by third seller is?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 10 %
Each seller sells at his own profit on the price he paid, so the successive profits multiply: the final price is the starting price times the three multiplying factors.
Assuming the price paid by the first seller to be 100:
First seller sells at 20% profit: \(100\times1.20=120\)
Second seller sells at 25% profit: \(120\times1.25=150\)
The whole rise is 65%, so the third seller sells at 165
Third seller’s profit: \(165-150=15\) on 150, that is \(\displaystyle\frac{15}{150}\times100=\) 10%