7. Successive Transactions (Profit/Loss Combined)

 

7. Successive Transactions (Profit/Loss Combined)

Type 1: Calculate the overall profit/loss when a product is sold multiple times.
Example 7: A shopkeeper buys an item for ₹500, sells it at a profit of $10\%$, and the buyer sells it again at a profit of $20\%$. Find the final selling price.
Solution:
Step 1: Selling price after the first sale:

$$SP_1 = CP + (\text{Profit\%} \times CP) = 500 + \frac{10}{100} \times 500 = 500 + 50 = 550$$

Step 2: Selling price after the second sale:

$$SP_2 = SP_1 + (\text{Profit\%} \times SP_1) = 550 + \frac{20}{100} \times 550 = 550 + 110 = 660$$

Answer: ₹660