**Question:**

Arshad sold a watch to Rahim at a gain of 5% and Arshad sold it to Rashid at a gain of 4%. If Rashid paid Rs. 1092 for it, the price paid by Arshad is:

**Option A):**

Rs. 995.90**Option B):**

Rs. 996**Option C):**

Rs. 993.72**Option D):**

Rs. 1000

**Correct Answer is Option D):**

Rs. 1000

**Explanation:****Solution:**

Let Arshad's C.P. = Rs. 100

Then Rahim's C.P. = Rs. 105

Rashid C.P. 's = Rs. (105 + 4.20) = 109.20

Hence price paid by Arshad

= 100/109.20 x 1092 = Rs. 1000