Question 40

A sold a toy to B at a profit of 15%. Later on. B sold it back to A at a profit of 20%, thereby gaining Rs. 552. How much did A pay for the toy originally?

Solution

Let say, A paid x Rs. to buy the toy originally.

A sold it to B at 15% profit .i.e B's cost price$$=1.15x.$$

B sold it again to A at 20% profit .i.e B's selling price$$=1.15x\times1.2=1.38x.$$

So,He gained$$1.38x-1.15x=.23x.$$

So, according to the question,

$$0.23x=552.$$

or,$$x=\frac{552}{0.23}=2400.$$

So, A paid 2400 Rs. originally.

A is correct choice.

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