Profit and Loss — A sells an article to B at a 10% profit, and B sells it to C at a 10% loss. If C pays ₹ 2079, how much did A originally pay (A’s cost price)?

Difficulty: Easy

Correct Answer: ₹ 2100

Explanation:


Introduction / Context:
Successive percentage changes applied to the same base (the item) can be chained multiplicatively. Here, a +10% followed by −10% yields a net factor of 0.99 applied to A’s cost when reaching C’s payment amount.


Given Data / Assumptions:

  • A’s cost = x (unknown).
  • A → B at +10% ⇒ B’s cost = 1.10x.
  • B → C at −10% ⇒ C’s payment = 0.90 * (1.10x) = 0.99x.
  • C pays ₹ 2079.


Concept / Approach:
Equate 0.99x to 2079 and solve for x. This is a straightforward reverse-percentage problem using multiplicative chaining.


Step-by-Step Solution:

0.99x = 2079 ⇒ x = 2079 / 0.99 x = 2100 Therefore, A originally paid ₹ 2100


Verification / Alternative check:
Forward chain: 2100 * 1.10 = 2310; 2310 * 0.90 = 2079 (matches C’s payment).


Why Other Options Are Wrong:
2160 or 2400 would map through the 0.99 net factor to values different from 2079; 2480 and 2000 are arbitrary here.


Common Pitfalls:
Treating +10% and −10% as canceling to 0%; multiplicative chaining shows the net factor is 0.99, not 1.00.


Final Answer:
₹ 2100

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