Word Problem 3
Problem 3 : A sells a house to B at profit of 5% and B sells it to C at profit of 10%. If C pays Rs 231 for it, what did it cost to A ?
Here we have to find the cost price which A paid for it
We take A, B and C’s cases individually:
Suppose cost price (CP) for A is x. Given here that A earns 5% profit i-e profit is 5% of cost price.
Since A is earning profit, We use Profit formula here which is;
Putting values of P (profit) and CP (cost price)
From there we can get sale price SP for A
Now this sale price will become cost price for B
B also earned profit, we again use here profit formula.
Given in question that B earns 10% profit of his cost price so,
Taking -ve term to other side;
After simplification, we get sale price for B as;
Now this sale price of B will become cost price of C
We are given that C pays Rs 231 to B i-e cost price of C is Rs. 231. But we found C’s cost price to be
Both are cost price for C , so these should be equal;
So, A’s cost was Rs 200/-