Multiple choice

The price of some wooden furniture increases by 65% when it passes through three hands. If the first and second sellers made a profit of 20% and 25%, respectively, then find the profit percentage of the third seller.

  1. 10%

  2. 12.5%

  3. 16%

  4. 8%
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A Correct answer
Explanation

Let final price = 165% of original. First seller: 120%, second seller: 125%. Let third seller's profit = p%. Then 1.20 × 1.25 × (1 + p/100) = 1.65. This gives 1.50 × (1 + p/100) = 1.65, so 1 + p/100 = 1.10, therefore p = 10%.

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