Multiple choice

Ayushman sold his bike to Satish at 22% profit. Satish sold it to the Deepak and then, Deepak sold it to Ranveer at the same margin. Ranveer marked up the cost by 20% and then offered a 15% discount to Chetan. If Chetan had bought it from Ayushman directly (Ayushman still keeping his 22% profit margin), then what approximate percentage reduction in price would he have got?

  1. 51%

  2. 32%

  3. 34%

  4. 44%

  5. 25%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let the initial cost be 100. After three successive 22% profit markups, the price becomes 100 * 1.22^3 = 181.58. Ranveer then marks up by 20% (181.58 * 1.2 = 217.9) and offers a 15% discount (217.9 * 0.85 = 185.21). If Chetan bought directly from Ayushman at 22% profit, the price would be 122. The reduction is (185.21 - 122) / 185.21, which is approximately 34%.

AI explanation

Let Ayushman's cost price be 100, making his selling price to Satish 122 at a 22% profit. Satish and Deepak also apply 22% margins, so Deepak sells it to Ranveer for 122*1.22*1.22 = 181.5848. Ranveer marks the price up by 20% and gives a 15% discount, making Chetan's buying price 181.5848*1.20*0.85 = 185.22. If Chetan had bought directly from Ayushman at the 22% margin, the direct price would be 122, so the percentage reduction from Ranveer's price is ((185.22-122)/185.22)*100, yielding a result of 34%.

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