Profit Loss Problem
Albert sells a cycle to Ben at a profit of 20% & Ben sells it to Cindy at a profit of 25%. If Cindy pays $1500, what did Albert pay for it?
This is how I tried:
Let Cost Price (C.P.) of Albert be 100
Profit Percentage of Albert=20%
So Selling Price (S.P.) of Albert (to Ben)=100+(20% of 100)=120
Profit Percentage of Ben=25%
So S.P. of Ben (to Cindy)=120+(25% of 120)=150
Now how do I proceed ahead?
Well, while you picked the lucky ticket but didn't know how to use it, I'd have done it using what I know. (Wink)
The CP to Cindy is $1500.
Let the cost price of Ben be x.
To find the selling price of Ben, we need
So, we get:
Then, do the same. Let y for example be the cost price of Albert. The selling price of Albert is given by:
OK...this is how I tried it.....
Let Ben's CP be 100
So Ben's SP=100+(25% of 100)=125
Ben's SP=Cindy's CP=1500
If Ben's SP=125, Ben's CP=100
If Ben's SP=1500, Ben's CP=(1500X100)/125=1200
Let Albert's CP be 100
So Albert's SP=100+(20% of 100)=120
Albert's SP=Ben's CP=1200
If Albert's SP=120, Albert's CP=100
If Albert's SP=1200, Albert's CP=(1200x100)/120=1000
So Albert pays $1000 for the cycle.
Have I done it correctly (answer is correct)? Are the steps correct?
The answers are correct. As for the method, I'm not sure if it is accepted, but I understand the logic behind it. (Happy)