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    A sells an article to B at a profit of 20% and B sells it to C at a profit of 20%. If C pays ₹360 for it, what was the cost price for A?
    Question

    A sells an article to B at a profit of 20% and B sells it to C at a profit of 20%. If C pays ₹360 for it, what was the cost price for A?

    A.

    ₹308

    B.

    ₹144

    C.

    ₹250

    D.

    ₹120

    Correct option is C

    Given:

    C pays ₹360

    B makes a 20% profit over A's cost

    C makes a 20% profit over B's cost

    Formula Used:

    Final Price = Cost Price×(1+Profit%100)2\text{Cost Price} \times \left(1 + \frac{Profit\%}{100}\right)^2​​

    Solution:

    360 = A's CP ×(1.2)2\times (1.2)^2​​

    360 = A's CP ×1.44\times 1.44​​

    A's CP = 3601.44\frac{360}{1.44}​ = ₹250

    Alternate Solution:

    CP of A : SP of A (CP Of B) : SP of B (CP of C)

    5 : 6 : (×5) : 5 : 6 (×6)

    25: 30: 36

    36 units = Rs. 360

    25 units = Rs. 250

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