Ramesh buys a radio for Rs. 4,000. He sells it at a profit of 10% to Mohan. Mohan spends Rs.500 on it. Then he sells it at a profit of 12% to Ritwik. The cost price of the radio to Ritwik is:

Correct option is D

Given:

Ramesh buys the radio for Rs. 4,000.

He sells it to Mohan at a 10% profit.

Mohan spends Rs. 500 on it.

Then Mohan sells it to Ritwik at a 12% profit.

Formula Used:

Selling Price = $$\text{Cost Price} \times \left(1 + \frac{\text{Profit \%}}{100}\right)$$​

Solution:

Ramesh sells to Mohan

SP to Mohan = $$4000 \times \left(1 + \frac{10}{100}\right)$$​

= $$4000 \times \left( \frac{110}{100}\right)$$​​

= 400 $$\times$$​ 11

= 4400

Mohan's total cost price (including extra Rs. 500):

CP for Mohan = 4400 + 500 = 4900

Mohan sells to Ritwik at 12% profit

SP to Ritwik = 4900 $$\times \left(1 + \frac{12}{100}\right)$$​​

= $$4900 \times \left(\frac{112}{100}\right)$$​​

= $$49 \times 112$$​​

= 5,488