Multiple choice

The price of a jewel, passing through three sellers, rises cumulatively by 70%. If the first two sellers earn profits of 20% and 25%, then the percentage of profit earned by the third seller will be

  1. 20%

  2. 25%

  3. 6.67%

  4. 13.33%

  5. 30%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let initial price be 100. Final price = 170. Let x be the third seller's profit. 100 * 1.20 * 1.25 * (1 + x) = 170. 150 * (1 + x) = 170. 1 + x = 170/150 = 1.1333. x = 0.1333 or 13.33%.

AI explanation

Assume the initial cost price of the jewel is Rs. 100. Since the final price increases by 70%, the final selling price is Rs. 170. The price after the first seller is 100 multiplied by 1.20, equaling Rs. 120. The price after the second seller is 120 multiplied by 1.25, equaling Rs. 150. For the overall result to reach Rs. 170, the third seller's price must increase from 150 to 170, meaning the third seller's profit percentage is (20 divided by 150) multiplied by 100, which equals 13.33%.

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