Multiple choice

Sophie buys a vintage watch for \$800 and sells it to Alex at a 25% profit. Alex then sells the watch back to Sophie at a 15% loss. Finally, Sophie sells the watch to Jordan. If Sophie ends up making a total profit of \$300 from all her transactions, what percentage profit did Sophie make when she sold the watch to Jordan?

  1. 7.45%

  2. 8.26%

  3. 9.54%

  4. 11.76%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Sophie buys at 800, sells to Alex at 25% profit (1000). Alex sells back to Sophie at 15% loss (1000 * 0.85 = 850). Sophie sells to Jordan for 1100 to make 300 total profit (800 - 1000 + 850 - 1100 = -350? No, total profit = (1000-800) + (X-850) = 300, so 200 + X - 850 = 300, X = 950). Profit on 850 is 100/850 = 11.76%.

AI explanation

Sophie's first sale to Alex is for 800 * 1.25 = 1000. Alex sells it back at a 15% loss, so Sophie buys it for 1000 * 0.85 = 850. Sophie's total expenditure is the initial 800 plus the 850, totaling 1650. To make a total profit of $300, her total revenue from all sales must be 1650 + 300 = 1950; since she already received 1000 from Alex, she must sell to Jordan for 950. Her profit on this final transaction is 950 - 850 = 100, which is a percentage profit of (100 / 850) * 100 = 11.76%.

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