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Please solve this Profit and loss problem

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by Brent@GMATPrepNow » Fri Dec 23, 2016 9:10 am
Arunkumar S wrote:A sells an item at 20% profit to B. B sells it to C at 10% profit. C sells it to D at Rs. 16 proft. Different between the cost price of D and cost price of A was Rs. 500. how much did B pay to A for the item?
(1) Rs. 1240
(2) Rs. 1250
(3) Rs. 1440
(4) Rs. 1450
(5) Rs. 1400
The wording of this question is pretty bad. Are you sure you transcribed the question correctly?
I have a feeling that EITHER "C sells it to D at Rs. 116 profit OR "Different between the cost price of D and cost price of A was Rs. 400."
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by Arunkumar S » Fri Dec 23, 2016 9:31 am
My thought is also c sells it to D at 116 profit.
Will check in other sites and let you know ASAP...
And thank you for your response sir.....
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by coolhabhi » Fri Dec 23, 2016 12:48 pm
Arunkumar S wrote:A sells an item at 20% profit to B. B sells it to C at 10% profit. C sells it to D at Rs. 16 proft. Different
between the cost price of D and cost price of A was Rs. 500. how much did B pay to A for the item?
(1) Rs. 1240
(2) Rs. 1250
(3) Rs. 1440
(4) Rs. 1450
(5) Rs. 1400
The Correct question is:

A sells an item at 20% profit to B. B sells it to C at 10% profit. C sells it to D at Rs. 116 profit. Difference between the cost price of D and the cost price of A was Rs.500. How much did B pay to A for the item?

Solution:

Cost Price (CP) of A =100%
CP of B =120%
CP of C =132%
CP of D =132%+116

Now difference between CP of A and D =500
(132%+116)−(100%)=500
32%=384
100%=1200
120%=1440
Ans:C
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by ceilidh.erickson » Mon Dec 26, 2016 6:01 am
What is the source of this question? Although the GMAT is an international test, it will always be written with American English grammar and idiom conventions:

- Abbreviations that are specific to other countries/cultures and not widely understood by an international audience (e.g. "Rs.") will not be found on the GMAT.

- "Difference between" is not idiomatic. It should be "the difference between"

- A, B, C, and D seem to be people. (The GMAT will almost always give people proper names, or at least say Person A). So "the cost price of D" is nonsensical. It should say "the price that Person D paid to Person C," etc.

Please always post your sources. This might be fine to practice with for quant skills, but other students on this forum should know that this is not a GMAT-like source.
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