# Profit Loss Problem

• September 16th 2010, 04:07 AM
rn5a
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?

Thanks,

Ron
• September 16th 2010, 04:32 AM
Unknown008
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 $x + (\dfrac{20}{100})x$

So, we get:

$x + (\dfrac{25}{100})x = 1500$

Find x.

Then, do the same. Let y for example be the cost price of Albert. The selling price of Albert is given by:

$y + (\dfrac{20}{100})y$
• September 16th 2010, 04:48 AM
rn5a
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?

Thanks,

Ron
• September 16th 2010, 04:50 AM
Unknown008
The answers are correct. As for the method, I'm not sure if it is accepted, but I understand the logic behind it. (Happy)