Masood purchased a plot for Rs. 8,000. He sells the plot to Aftab at a profit of 20%. Aftab in turn sells that plot to Zahid at a loss of 20%. The plot costs Zahid ?

1. Rs. 12,000
2. Rs. 10,000
3. Rs. 8670
4. Rs. 7680

Here’s how to solve this problem step-by-step:

1. Calculate the selling price from Masood to Aftab:

• Profit percentage = 20%
• Profit amount = 20% of Rs. 8,000 = (20/100) * 8,000 = Rs. 1,600
• Selling price to Aftab = Cost price + Profit = Rs. 8,000 + Rs. 1,600 = Rs. 9,600

Explanation: Masood made a profit of 20% on his initial purchase price. To find the selling price, we calculate the profit amount and add it to his original cost.

2. Calculate the selling price from Aftab to Zahid:

• Loss percentage = 20%
• Loss amount = 20% of Rs. 9,600 = (20/100) * 9,600 = Rs. 1,920
• Selling price to Zahid (Cost for Zahid) = Cost price for Aftab – Loss = Rs. 9,600 – Rs. 1,920 = Rs. 7,680

Explanation: Aftab sold the plot at a loss of 20% of his purchase price (which was Masood’s selling price). To find the final cost for Zahid, we calculate the loss amount and subtract it from Aftab’s purchase price.

Therefore, the plot costs Zahid Rs. 7,680.