Question

Gopal bought a cell phone and sold it to Ram at 10% profit. Then Ram wanted to sell it back to Gopal at 10% loss. What will be Gopal's position if he agreed? 

(a) Neither loss nor gain 

(b) Loss 1% 

(c) Gain 1% 

(d) Gain 0.5%

Answer 1

Correct option (c) Gain 1%

Explanation:

Let cost price for Gopal = Rs. 100 

He sold it to Ram at 10% profit. So, his selling price = 100 + 10% of 100 = 100 + 10 = Rs. 110 

Now, if Ram resales it to Gopal at 10% loss, his selling price = 110 – 10% of 110 = 110 – 11 = Rs. 99 As far as Gopal is concerned, in this second transaction, by buying a Rs. 100 pen at Rs 99, he registers a gain of 1%.