A sells an item to B at a profit of 1/5 of its cost. B sells it to C at a profit of 20%. Accordingly, if C Sell it for ₹ 600 and he has lost 1/6 of his cost, what is the cost price of A?
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Cost Price of C :
↪SP=CP×(1-LOSS)
↪600=CP×6-1/6
↪600=CP×5/6
↪600×6/5=CP
↪120×6=CP
↪₹720=CP
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Accordingly to the question,
➡A's CP × (1+profit)×(100+profit)% = C's CP
➡A's CP ×(1+¹/5)×(100+20%)=720
➡A's CP × 6/5 × 120% = 720
➡A's CP × 1/5 × 120/100 = 120
➡A's CP × 1/5 × 6/5 = 120
➡A's CP × 6/25 = 120
➡A's CP × 6 = 120×25
➡A's CP = 120×25/6
➡A's CP = 20× 25
➡A's CP = ₹500
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