Multiple choice

The price of a jewel, passing through three hands, rises on the whole by 65%. If the first and the second sellers earned 20% and 25% profit, respectively, find the percentage profit earned by the third seller.

  1. 20%

  2. 10%

  3. 25%

  4. No gain or loss

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let initial price = 100. Final price = 165. Seller 1 profit 20%: Price becomes 120. Seller 2 profit 25%: Price becomes 120 * 1.25 = 150. Seller 3 profit x%: 150 * (1 + x/100) = 165. 1 + x/100 = 165/150 = 1.1. x = 10%.

AI explanation

Using the successive percentage change formula where the final price is 165 percent, let the total cost price be 100, making the final selling price 165. The selling price after the first two profits is 100 times 1.20 times 1.25, resulting in 150. The third seller's profit percentage is calculated as 165 minus 150, divided by 150, times 100, resulting in a 10% profit.

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