A sells a bicycle to B at a profit of 20% and B sells it to C at a profit of 25%. If C pays 1,500, then what did A pay for it?

Correct option is B

Given:

A sells the bicycle to B at a 20% profit.

B sells it to C at a 25% profit.

C pays 1,500.

Solution:

Let the cost price of the bicycle for A be x.

A sells the bicycle to B at a 20% profit.

The selling price from A to B is 20% more than xxx, So, 

​Selling price from A to B = x + 0.20x = 1.20x 

B sells the bicycle to C at a 25% profit.

The selling price from B to C is 25% more than the price at which B bought it, which is $1.20x$.

So, 

Selling price from B to C = 1.20x + 0.25(1.20x)= 1.20x × 1.25 = 1.50x

We know that C pays 1,500 for the bicycle.

So, we can set up the equation:

1.50x = 1,500

$$x = \frac{1,500}{1.50} = 1,000$$​​

Thus, A paid  Rs.1,000 for the bicycle.