A bought a tape recorder for Rs 8,000 and sold it to B. B in turn sold

1.	A bought a tape recorder for Rs 8,000 and sold it to B. B in turn sold it to C, each earning a profit of 20%. Which of the following is true:(a) A and B earn the same profit. (b) A earns more profit than B. (c) A earns less profit than B. (d) Cannot be decided.
Answer» (c) A earns less profit than B Explanation: Cost price of tape recorder bought by A = Rs.8000 Cost price of tape recorder for B =20% profit on cost price for A = 20/100 x 8000 + 8000 = 20 x 80 + 8000 = 1600 + 8000 = Rs.9600 Cost price of tape recorder sold to C = 20% profit on cost price for B = 20/100 x 9600 + 9600 = 1929 + 9600 = Rs.11520 Here, profit for A= Rs.1600 Profit for B = Rs.1920 So, A earns less profit than B.

A bought a tape recorder for Rs 8,000 and sold it to B. B in turn sold it to C, each earning a profit of 20%. Which of the following is true:(a) A and B earn the same profit. (b) A earns more profit than B. (c) A earns less profit than B. (d) Cannot be decided.

Answer»

(c) A earns less profit than B

Explanation:

Cost price of tape recorder bought by A = Rs.8000

Cost price of tape recorder for B =20% profit on cost price for A

= 20/100 x 8000 + 8000

= 20 x 80 + 8000

= 1600 + 8000

= Rs.9600

Cost price of tape recorder sold to C = 20% profit on cost price for B

= 20/100 x 9600 + 9600

= 1929 + 9600

= Rs.11520

Here, profit for A= Rs.1600 Profit for B = Rs.1920

So, A earns less profit than B.