P sells an article to Q at a loss of 5% and Q sells that article to R at a loss of 20%. If R pays ₹ 2812 for the article, then what was the cost price for P?

Given:

P sells an article to Q at a loss of 5%

Q sells that article to R at a loss of 20%

R pays ₹ 2812 for the article

Concept:

P sells the article to Q. Therefore Q's Cost Price will be P's Selling Price and Q sells the article to R. Therefore R's Cost Price will be Q's Selling Price

Calculation:

R pays ₹ 2812 for the article

∴ R's Cost Price = 2812

Q's Selling Price = R's Cost Price = 2812

⇒ Q's Cost Price = 2812 × (100/80) = 3515   (∵ 20% Loss)

P's Selling Price = Q's Cost Price = 3515

⇒ P's Cost Price = 3515 × (100/95) = 3700   (∵ 5% Loss)

∴  The cost price for P = ₹3700