Question

On selling an article for Rs. 246.80, the gain is 20% more than the amount of loss incurred on selling it for Rs. 216. If the article is sold for Rs. 220.75, then what is the gain/loss percent (correct to nearest integer)?
1. Profit 7%
2. Loss 4%
3. Loss 5%
4. Profit 3%

Answer 1

Correct Answer - Option 2 : Loss 4%

Given:

When article sold at Rs. 246.80 it gains

When article sold at Rs. 216 it losses

Gain is 20% more than the loss

Gain or loss when article sold at Rs. 220.75

Formula used:

Loss = cost price –  selling price

Loss = selling price –  cost price

Loss% = (Loss/cost price) × 100

Calculation:

Let the cost price be x

It losses when selling price = Rs. 216

⇒ Loss = (x – 216)     ----(1)

It gains when selling price = Rs. 246.80

⇒ Gain = (246.80 –  x)

According to the question

(246.80 – x) = (x – 216) × (120/100)

⇒ 2468 –  10x = 12x –  2592

⇒ 22x = 5060

⇒ x = 230

So, cost price = Rs. 230

Now,

Selling price = 220.75

⇒ Loss = 230 – 220.75

⇒ Loss = 9.25

⇒ Loss% = (9.25/230) × 100

⇒ Loss% = 4.02% ~ 4%

∴The loss percent is 4%