Question

A shopkeeper sells two tables, each procured at cost price $p$, to Amal and Asim at a profit of 20% and at a loss of 20%, respectively. Amal sells his table to Bimal at a profit of 30%, while Asim sells his table to Barun at a loss of 30%. If the amounts paid by Bimal and Barun are $x$ and $y$, respectively, then $(x - y) / p$ equals

Accepted Answer

A. Price paid by Amal $= 1.2 p$. Price paid by Bimal ($x$) $= 1.2 p 	imes 1.3 = 1.56 p$. Price paid by Asim $= 0.8 p$. Price paid by Barun ($y$) $= 0.8 p 	imes 0.7 = 0.56 p$. Therefore: $$\frac{x - y}{p} = \frac{1.56 p - 0.56 p}{p} = 1$$

Successive profit and loss transactions

Explanation

Practise this under exam conditions