Question

A sold an article to B at a profit of 20%, B sold that article to C at a profit of 10% and C sells that article to A again at a loss of 25%. What is the total profit percentage of A?
1. 20%
2. 24%
3. 21%
4. 25%

Answer 1

Correct Answer - Option 3 : 21%

GIVEN:

A sold an article to B at a profit of 20%, B sold that article to C at a profit of 10% and C sells that article to A again at a loss of 25%.

FORMULA USED:

SP = CP × (1 - Loss %/100)

SP = CP × (1 + Profit %/100)

CALCULATION:

Let the CP for A be 100

So,

SP for A and CP for B = 100 × 1.2 = 120

SP for B and CP for C = 120 × 1.1 = 132

SP for C and CP for A = 132 × 0.75 = 99

Now if we take a look at the three transactions we will find out CP for A is 99 and SP for A is 120 so profit is 21.

But this profit percentage will be calculated at the original CP for A that is Rs. 100

So

Profit% = 21/100 × 100 = 21%