Question

Avinash bought an iron at some price, later he sold it to Praveen at 10% profit. However Praveen damage the iron and spent Rs.1500 for it's repairing and later sold it to Piyush at a loss of 25%. What is the price at which Avinash brought the Iron, such that if he directly sold the iron to Piyush he would have gained a profit of 5%?
1. Rs.4500
2. Rs.4800
3. Rs.6200
4. Rs.5500
5. Rs.5000

Answer 1

Correct Answer - Option 5 : Rs.5000

Let the price at which Avinash brought the iron be 100x

He sold it to Praveen at 10% profit 

Cost Price for Praveen = 100x × (110/100) = 110x

Now Praveen spent Rs.1500

Total cost price = 110x + 1500

He sold it to Piyush at 25% loss 

Cost Price for Piyush = (110x + 1500) × (75/100) = (3/4) (110x + 1500)

If Avinash had directly sold it to Piyush he would have gained 5%

∴ According to question

⇒ {{(3/4) (110x + 1500) –  100x}/100x} × 100 = 5

⇒ (4500 – 70x)/4 = 5x

⇒ 90x = 4500

⇒ x = 50

∴ Cost Price for Avinash = 100 × 50 = 5000

∴ The price at which Avinash brought the Iron is Rs.5000