Question

‘A’ sold a table to ‘B’ at a profit of 15%, later on ‘B’ sold it back to ‘A’ at a profit of 20% there by gaining Rs. 69. How much did ‘A’ pay for the table originally?

• A. Rs. 280
• B. Rs. 320
• C. Rs. 300
• D. Rs. 330

Hint:

When calculating profit, use the formula \( \text{Selling Price} = \text{Cost Price} \times (1 + \text{Profit Percentage}) \) and solve stepwise.

Answer 1

The Correct Option is C

Step 1: Let the original cost price of the table be \( x \). 
Step 2: ‘A’ sold the table to ‘B’ at 15\% profit, so the selling price from A to B is: \[ S_1 = x \times \left( 1 + \frac{15}{100} \right) = x \times 1.15 \] Step 3: ‘B’ sold the table back to ‘A’ at 20\% profit, so the selling price from B to A is: \[ S_2 = S_1 \times \left( 1 + \frac{20}{100} \right) = 1.15x \times 1.20 = 1.38x \] 
Step 4: The profit gained by ‘A’ is Rs. 69, so: \[ S_2 - x = 69 \] \[ 1.38x - x = 69 \] 
Step 5: Solve for \( x \): \[ 0.38x = 69 \quad \implies \quad x = \frac{69}{0.38} = 300 \] Thus, the original cost price of the table is Rs. 300.