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Karan sells his bike to Aman at a profit of 20% who sells it to Varun at a loss of 20%. Varun, after finding some scratches in the bike, returns it to Aman, but Aman deducted 1/8th of the amount he got while giving the money back to Varun. Find Varun loss (in Rs.) in the transaction if Karan bought the bike for Rs. 3,50,000.

Karan sells his bike to Aman at a profit of 20% who sells it to Varun at a loss of 20%. Varun, after finding some scratches in the bike, returns it to Aman, but Aman deducted 1/8th of the amount he got while giving the money back to Varun. Find Varun loss (in Rs.) in the transaction if Karan bought the bike for Rs. 3,50,000. Correct Answer 42,000

Let Devesh’s C.P = Rs. 100

S.P for Karan = C.P for Aman = Rs. 120

Then, S.P for Aman = C.P for Varun = 80% of 120 = Rs. 96

After deduction, Varun’s loss = 1/8 × 96 = 12

When Karan pays Rs. 100, Varun loss was Rs. 12

∴ When Karan paid Rs. 3,50,000, Varun loss = 12/100 × 3,50,000 = Rs. 42,000

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