Question

Given below are two statements:

Statement I: If an article is sold at a gain of 19%, then selling price is 109% of cost price.

Statement II: If an article is sold at a loss of 9%, then selling price is 109% of cost price.

In the light of the above statements, choose the most appropriate answer from the options given below:

1. Both Statement I and Statement II are correct
2. Both Statement I and Statement II are incorrect
3. Statement I is correct but Statement II is incorrect
4. Statement I is incorrect but Statement II is correct

Answer 1

Correct Answer - Option 2 : Both Statement I and Statement II are incorrect

Given:

Gain = 19%

Loss = 9%

Concept used:

Selling price = (100 + P%)/100 × Cost price

Selling price = (100 – L%)/100 × Cost price

Calculation:

Let the Cost price of the article be 100

Selling price when the gain is 19%

SP = (100 + 19)/100 × 100 = 119

Here, SP is 119% of the CP so the first statement is incorrect

Now, Selling price when the loss is 9%

SP = (100 – 9)/100 × 100 = 91

Here, SP is 91% of the CP so the second statement is also incorrect

∴ The correct answer is option 2