A purchased an item and increases its price by 20% and sold it to B at 10% discount. B increases the price by 25% and sold it to C at a 40% discount. C then increase the price of the item by Rs. 281.6 and sold it back to A at 10% discount. A earns 12.5% profit in this transaction, then at what price C purchased the item?

A purchased an item and increases its price by 20% and sold it to B at 10% discount. B increases the price by 25% and sold it to C at a 40% discount. C then increase the price of the item by Rs. 281.6 and sold it back to A at 10% discount. A earns 12.5% profit in this transaction, then at what price C purchased the item? Correct Answer Rs. 518.4

Let purchased price for A be 100x

Price at which B purchased the item = 90% of 120% of 100x = 108x

Price at which C purchased the item = 60% of 125% of 108x = 81x

Price at which A purchased the item from C = 90% of (81x + 281.6)

According to the question,

72.9x + 253.44 = 112.5% of 100x

⇒ 39.6x = 253.44

⇒ x = 6.4

∴ Price at which C purchased the item = 81x = Rs. 518.4

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