Explanation
Masood’s selling price to Aftab is calculated as the cost price plus 20% of the cost price, which equals Rs. 8,000 + 20% of Rs. 8,000, resulting in Rs. 9,600. This answer is correct because the profit percentage is directly added to the cost price to determine the selling price, and then Aftab’s selling price to Zahid is calculated as 80% of his cost price, which is Rs. 9,600, leading to a selling price of Rs. 7,680. The QuizMaster of AnsweringExams.Com suggests remembering this calculation by associating the 20% profit and 20% loss with the dates 20-02-2020, helping to recall that the final price after both transactions is 80% of 120% of the original cost, which simplifies to 96% of the original cost, and then applying this to the original cost of Rs. 8,000. Other options are incorrect because they do not accurately reflect the sequential application of the profit and loss percentages to the original cost price. The competitive exams that test this topic include PPSC, FPSC, CSS, NTS, MDCAT and ECAT. Practice more at AnsweringExams.Com.
