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The price of an article, passing through three hands, rises on the whole by 61%, if the first and the second sellers earned 15% and 20% profit respectively, find the percentage profit earned by the third seller.

Solution

✅ Correct Option: 2

An article is sold through 3 sellers. Each seller buys it and then sells it at a profit:

  • 1st seller makes 15% profit
  • 2nd seller makes 20% profit
  • 3rd seller makes unknown profit
  • Overall increase is 61% from original price to final price

Let the original cost price be 100100.


The 1st seller earns 15% profit.

Price after 1st seller =100×(1+15100)= 100 \times (1 + \dfrac{15}{100})

=100×1.15= 100 \times 1.15

=115= 115


The 2nd seller earns 20% profit on 115115.

Price after 2nd seller =115×(1+20100)= 115 \times (1 + \dfrac{20}{100})

=115×1.20= 115 \times 1.20

=138= 138


The overall increase is 61% from the original price.

Final Price =100×(1+61100)= 100 \times (1 + \dfrac{61}{100})

=100×1.61= 100 \times 1.61

=161= 161


The 3rd seller buys at 138138 and sells at 161161.

Let the profit percentage be x%x\%.

138×(1+x100)=161138 \times (1 + \dfrac{x}{100}) = 161

1+x100=1611381 + \dfrac{x}{100} = \dfrac{161}{138}

x100=161138−1\dfrac{x}{100} = \dfrac{161}{138} - 1

x100=161−138138\dfrac{x}{100} = \dfrac{161 - 138}{138}

x100=23138\dfrac{x}{100} = \dfrac{23}{138}

x=2300138x = \dfrac{2300}{138}

x=503x = \dfrac{50}{3}

x=1623%x = 16\dfrac{2}{3}\%

Therefore, the third seller earned a profit of 1006%\dfrac{100}{6}\%.

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