A person P sells an article to another person Q at a profit of 20%. Later P wants to retain it, and…
P makes a profit of 24% of his original cost. Taking the original cost as 100, P receives 120 on the sale and pays 120 × 0.80 = 96 to buy the article back. He therefore ends…
Choose your answer
A person P sells an article to another person Q at a profit of 20%. Later P wants to retain it, and purchases from Q. Q sells it to P at a loss of 20% on his purchase price from P. Then in the process P gets (as a percentage of his original cost).
Answer and explanation
Correct answer C
P makes a profit of 24% of his original cost. Taking the original cost as 100, P receives 120 on the sale and pays 120 × 0.80 = 96 to buy the article back. He therefore ends with the same article and a net cash gain of 120 - 96 = 24.
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