Question

Vaibhav brought a pen for Rs.2000. He sold it to Ravi at a loss of 20%. Ravi had to earn some profit, so he sold it to Vikas at 10% profit. If Vikas has to earn a profit of 10% from selling it, at what price (in Rs.) should he sell the pen?
1. 1975
2. 1936
3. 1950
4. 1924
5. 1904

Answer 1

Correct Answer - Option 2 : 1936

Cost price of the pen for Vaibhav = Rs.2000

Loss for Vaibhav = 20%

So, selling price for Vaibhav =  [(100 – 20)/100] × 2000 = Rs.1600

Hence, Cost Price for Ravi = Rs.1600

Profit earned by Ravi = 10%

So, Selling price for Ravi = [(100 + 10)/100] × 1600 = Rs.1760

Hence, Cost Price for Vikas = Rs.1760

Profit to be earned by Vikas = 10%

So, Selling Price for Vikas = [(100 +10)/100] × 1760 = Rs.1936

∴ The price at which Vikas should sell the pen is Rs.1936

Shortcut Method:

We can directly obtain the Selling price for Vikas as:

2000 × [(100 – 20)/100] × [(100 + 10)/100] × [(100 +10)/100] = 1936