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Question:

A pen passing through two hands is finally sold at a profit of 44% of the original cost price. If the first dealer makes a profit of 20%, then the profit made by the second dealer is:

Explanation:

Let the original cost prime of the pen = Rs. 100

First person sells the pen for 20% profit, hence selling price for first person = Rs. 120 [This is the cost price for 2^nd person.]

Now, overall the price increases by 44% after 2 hands, it means the second person sold the pen for Rs. 144.

∴ Profit of 2^nd person = $\frac{144-120}{120}$ × 100 = 20%

Hence, option (c).