Question : A sold an item to B at a gain of 25% and B sold it to C at a loss of 10%. If C paid INR 6,520 for it, then the cost price of the item for A was:
Option 1: INR 4,355$\frac{4}{9}$
Option 2: INR 6,125$\frac{1}{9}$
Option 3: INR 4,785$\frac{4}{9}$
Option 4: INR 5,795$\frac{5}{9}$
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Correct Answer: INR 5,795$\frac{5}{9}$
Solution : Let, the A pay for the mobile phone be $x$. A sold the item to B at a gain of 25% ⇒ the cost price for B is $x$ + 25% of $x = x+\frac{x}{4}=\frac{5x}{4}$. B sold the item to C at a loss of 10% $\therefore$ The cost price for C is 90% of what B paid. ⇒ the cost Price for C $=\frac{90}{100}×\frac{5x}{4}=\frac{9x}{8}$ According to the question, $\frac{9x}{8}=6,520$ ⇒ $x=\frac{6520×8}{9}=\frac{52160}{9}=5795\frac{5}{9}$ Hence, the correct answer is INR 5795$\frac{5}{9}$.
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