Ketan bought a shirt and sold it to Mahesh at a profit of 5%. Mahesh sold it to David at a loss of 24%. If David paid Rs. 3990, then the cost price (in Rs. ) of the shirt Ketan bought is

Correct option is C

Given:

Profit from Ketan to Mahesh = 5%

Loss from Mahesh to David = 24%

Selling Price (SP) for David = ₹3990

Formula Used:

SP = $$\text{CP} \times \left(1 + \frac{\text{Profit or Loss \%}}{100}\right)$$​​

Solution:

David bought it at a 24% loss from Mahesh:

Mahesh's SP = $$\frac{3990}{1 - \frac{24}{100}} = \frac{3990}{0.76}$$​ = ₹5250

Mahesh bought it at 5% profit from Ketan:

Ketan's CP =$$\frac{5250}{1 + \frac{5}{100}} = \frac{5250}{1.05}$$​ = ₹5000