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%