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P sells an item at 25% profit to Q. Q sells it to R at 20% profit. R sells it to S at Rs. 180 profit. Difference between the cost price of S and cost price of P was Rs. 680. How much did Q pay to P for the item?

P sells an item at 25% profit to Q. Q sells it to R at 20% profit. R sells it to S at Rs. 180 profit. Difference between the cost price of S and cost price of P was Rs. 680. How much did Q pay to P for the item? Correct Answer Rs. 1250

Let the cost price for P be Rs. x

Therefore,

Cost price for S = x × (125/100) × (120/100) + 180 = 1.50x + 180

Now, according to question,

1.50x + 180 – x = 680

⇒ 0.50x = 500

⇒ x = Rs. 1000

Therefore cost price for Q = (1000 × 125)/100 = Rs. 1250

Hence, option 2) is correct.

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