A sells an article to B at a loss of 20%. B sells it to C at a profit of 12.5% and C sells it to D at a loss of 10%. If D buys it for Rs. 248.40, then what is the cost price of A?
Answer & explanation
Correct answer: option 2
20% = \(\frac{1}{5}\)
12.5%= \(\frac{1}{8}\)
10%= \(\frac{1}{10}\)
let C.P. of A = A,
Then C.P. of B = A × \(\frac{4}{5}\)
C.P. of C = A × \(\frac{4}{5}\) × \(\frac{9}{8}\)
C.P. of D = A × \(\frac{4}{5}\) × \(\frac{9}{8}\)× \(\frac{9}{10}\)
248.40 = A × \(\frac{4}{5}\) × \(\frac{9}{8}\)× \(\frac{9}{10}\)
A = 248.4 × \(\frac{5}{4}\) × \(\frac{8}{9}\)× \(\frac{10}{9}\)
A = \(\frac{2484 × 10 }{81}\) = 306.66