Multiple choice

A sells his motorcycle to B at a profit of 7%. B sells it to C at a profit of 8%. If C pays Rs. 14,445 for it, then what was the cost price of motorcycle for A?

  1. Rs. 12,500

  2. Rs. 12,450

  3. Rs. 13,500

  4. Rs. 13,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let the cost price be x. After a 7% profit, the price is 1.07x. After an 8% profit on that, the price is 1.07x * 1.08 = 1.1556x. Setting 1.1556x = 14445, we get x = 14445 / 1.1556 = 12500.

AI explanation

Using the successive profit formula, the final selling price is the original cost multiplied by 1.07 and then by 1.08. This equates to the cost multiplied by 1.1556. Setting 1.1556 times the cost equal to 14445 and solving gives the original cost price of Rs. 12,500.

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