Question

A radio is sold for Rs. 990 at a profit of 10%. What would have been the actual profit or loss on it, if it had been sold for Rs. 890?
1. Rs. 90 profit
2. Rs. 90 loss
3. Rs. 10 profit
4. Rs. 10 loss

Answer 1

Correct Answer - Option 4 : Rs. 10 loss

Given:

Selling price (S.P.) of a radio = 990 Rs.

Profit = 10%

Second selling price (S.P.) of a radio = 890 Rs.

Formula used:

Cost price (C.P.) = S.P. × 100/(100 + profit%)

Calculation:

C.P. of radio = 990 × 100/(100 + 10) = 900

Second S.P. = Rs.890

Loss = C.P. - S.P.

Loss = 900 - 890 = Rs.10

∴ The loss is Rs.10.