Question

The cost price of a car was Rs. 150000. Raju sold it to Montoo at a profit of 5%, and later Montoo sold it back to Raju at 2% loss. Find The total profit or loss in the entire transaction.
1. Raju's gain Rs. 4,500
2. Raju's loss Rs. 4,350
3. Raju's gain Rs. 3,150
4. Raju's gain Rs. 4,350

Answer 1

Correct Answer - Option 3 : Raju's gain Rs. 3,150

Given:

Cost price of car = Rs.150000

Formula:

Profit = SP - CP

SP = CP × (100 + Profit%)/100

Calculation:

SP for Raju = 150000 × 105/100 = Rs.157500

CP for Montoo = SP for Raju

Then,

CP for Raju = 157500 × 98/100 = Rs.154350

Total profit Raju had = 157500 - 154350 = Rs.3150

∴ Raju's profit in entire transaction is Rs.3150.