Question

Abdul sold two television sets, one at a profit of 5%, and the other at a loss of 5%. Find the overall loss or gain percentage in the overall transaction.
1. Profit, 1%
2. Loss, 0.25%
3. Loss, 5%
4. Profit, 2%
5. No profit, no loss

Answer 1

Correct Answer - Option 2 : Loss, 0.25%

Given:

Profit on selling the first television set = 5%

Loss on selling the second television set = 5%

Formula Used:

If two items are sold, one at a profit of x%, and the other at a profit of x%; the overall loss percentage in the whole transaction is x²/100

Calculation:

Loss percentage on first television = Profit percentage on second television,

we use the relation for the overall loss percentage in the transaction as:

Overall Loss % = (5 × 5)/100 = 0.25%

∴ There is an overall loss of 0.25% in the overall transaction