Multiple choice

A sells a bicycle to B at a profit of 20%. B sells it to C at a profit of 25%. If C pays 225/- for it, the cost price of the bicycle for A is:

  1. 110

  2. 125

  3. 120

  4. 150

  5. 0

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let A's CP be x. B's CP = 1.2x. C's CP = 1.2x * 1.25 = 1.5x. 1.5x = 225, so x = 225 / 1.5 = 150.

AI explanation

Using the successive selling price formula, the final price equals the original cost price multiplied by (1 + profit percentage of B) multiplied by (1 + profit percentage of C). This gives 225 = x times 1.20 times 1.25. Solving for x yields 150, which is the cost price for A.