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

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Answer:

£170,000

Explanation:

Bianca bought the house for 1 +20% = 1.2 times Rafik's purchase price. She sold it for 1 -5% = 0.95 times what she bought it for. So, we have ...

(Rafik's purchase price)×1.2×0.95 = £193800

Rafik's purchase price = £193,800/(1.2×0.95) = £170,000

Rafik bought the house for £170,000.