Multiple choice

Directions: Answer the questions independently of each other. A car dealer sells 4 cars at Rs.300000 each. He makes a profit of 10% and 5% on two of the cars and makes a loss of 15% on the third car. At what approximate cost price must he have bought the fourth car to make an overall profit of 8%?

  1. Rs.200000

  2. Rs.151000

  3. Rs.127000

  4. Rs.258000
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A Correct answer
Explanation

Total sales = 4 * 300,000 = 1,200,000. Total cost price (CP) for 8% profit = 1,200,000 / 1.08 = 1,111,111. CP of first three cars: 300,000/1.1 + 300,000/1.05 + 300,000/0.85 = 272,727 + 285,714 + 352,941 = 911,382. CP of fourth car = 1,111,111 - 911,382 = 199,729, which is approximately 200,000.

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