Question

In 2010, Rafik bought a house. In 2015, Rafik sold the house to Bianca. He made a 20% profit on the sale. In 2019, Bianca sold the house for £193800. She made a 5% loss. Work out how much Rafik paid for the house in 2010.

Answer 1

£170000

Explanation:

In 2010, Rafik bought a house. Let us assume Rafik bought the house for $x. In 2015, Rafik sold the house to Bianca and made 20% profit. 20% profit = 20% of x = 0.2 × x = 0.2x. Therefore Rafik sold the house to Bianca at x + 0.2x = 1.2x. Bianca bought the house at 1.2x

The house was sold by Bianca at 5% loss in 2019. 5% loss = 0.05(1.2x) = 0.06x

Therefore the house was sold by Bianca at 1.2x - 0.06x = 1.14x. Since Bianca sold the house at £193800.

⇒ 1.14x = 193800

x = 193800/1.14

x = £170000

Rafik paid £170000 for the house in 2010