A sells a bicycle to B at a profit of 20%, and B sells it to C at a loss of…
2026
A sells a bicycle to B at a profit of 20%, and B sells it to C at a loss of 10%. If A bought the bicycle for ₹10,000, how much did C pay for it?
Answer: A. ₹10,800 — ConceptSuccessive percentage changes act on consecutive bases, so their multipliers are multiplied rather than their percentages being directly added or…
- A.
₹10,800
- B.
₹11,000
- C.
₹11,200
- D.
₹10,500
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Show answer & explanation
Correct answer: A
Concept
Successive percentage changes act on consecutive bases, so their multipliers are multiplied rather than their percentages being directly added or subtracted.
A gain of p% uses the multiplier (1 + p/100), while a loss of q% uses (1 - q/100).
Application
A’s cost price is ₹10,000. After a 20% profit, B’s purchase price is ₹10,000 × 1.20 = ₹12,000.
B then sells at a 10% loss. Therefore C pays ₹12,000 × 0.90 = ₹10,800.
Cross-check
The net percentage change is 20 - 10 - (20 × 10)/100 = 8% gain. Hence ₹10,000 × 1.08 = ₹10,800, which confirms the result.
Therefore, C pays ₹10,800.