Nivin buys a watch for Rs. 500 and sells it to Shinoy at 10% profit, Shinoy then sells it to Jenu at 20% loss and Jenu sells it to Jeevan 10% loss. How much did Jeevan pay for the watch ?

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Kerala PSC Common Preliminary Exam (GRADUATE LEVEL) PYP - 096/21
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  1. Rs. 484 
  2. Rs. 396 
  3. Rs. 384 
  4. Rs. 480  

Answer (Detailed Solution Below)

Option 2 : Rs. 396 
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Detailed Solution

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Given:

Cost Price for Nivin (CPNivin) = ₹500

Profit percentage for Nivin = 10%

Loss percentage for Shinoy = 20%

Loss percentage for Jenu = 10%

Formula Used:

Selling Price (SP) = CP × (1 + Profit%/100)

Selling Price (SP) = CP × (1 - Loss%/100)

Calculation:

Selling Price for Nivin (SPNivin) = 500 × (1 + 10/100)

⇒ SPNivin = 500 × (1 + 0.1)

⇒ SPNivin = 500 × 1.1 = ₹550

Cost Price for Shinoy (CPShinoy) = SPNivin = ₹550

Selling Price for Shinoy (SPShinoy) = 550 × (1 - 20/100)

⇒ SPShinoy = 550 × (1 - 0.2) = 550 × 0.8 = ₹440

Cost Price for Jenu (CPJenu) = SPShinoy = ₹440

Selling Price for Jenu (SPJenu) = 440 × (1 - 10/100)

⇒ SPJenu = 440 × (1 - 0.1) = 440 × 0.9 = ₹396

Cost Price for Jeevan = SPJenu = ₹396

∴ Jeevan paid ₹396 for the watch.

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