When a gem is handled by three people, its price increases by an average of . Determine the third seller's percentage profit if the first and second sellers made profit, respectively.

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answer is D.

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Detailed Solution

Concept: Here, we'll make two assumptions: the cost of the jewel and the third seller's percent profit. Each seller's profit is calculated as a percentage of the preceding seller's selling price. This indicates that a profit is made by the second seller on the first seller's selling price. The cost price of the second seller is equal to the first seller's selling price.
The answer to the question reveals that the jewel's price has climbed by

. By raising the price of the jewel by

, the first seller makes a profit, and the second seller makes a profit by raising the price of the jewel by

over that of the first seller.
Assume that P represents the jewel's initial cost price before the rise.
Let x percent be the third seller's profit margin.
Consequently, the jewel's final cost following the increase
Question Image

The jewel's selling price after the initial buyer
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The jewel's selling price following the second vendor
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The jewel's selling price after the third vendor
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Now, in response to the inquiry, we can write
Question Image

Consequently, the third seller's profit percentage is

.
Hence, option 4 is correct.

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