Multiple choice

Narang bought two bikes for Rs. 20,000 each. One of them he sold at a profit of 15% and the other he sold at a loss of 5%. What was his net profit/loss%? If he sold the first bike at 20% profit and the second at 25% loss, what percentage of the previous profit/loss would his profit /loss now be?

  1. 5%, 70%

  2. 5%, 50%

  3. 5%, 60%

  4. 6%, 50%

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In the first case, the net profit is 15% - 5% = 10% of the cost of one bike, which is a net profit of 5% on the total investment of Rs. 40,000 (amounting to Rs. 2,000). In the second case, the net result is a 20% profit and a 25% loss, leading to a net loss of 5% of one bike's cost, which is Rs. 1,000. Comparing the new loss of Rs. 1,000 to the previous profit of Rs. 2,000, we find it is exactly 50% of the previous value.

AI explanation

In the first scenario, the profit on the first bike is 20000 times 0.15, equaling 3000 rupees, and the loss on the second is 20000 times 0.05, equaling 1000 rupees, giving a net profit of 2000 rupees on a total cost of 40000 rupees for a 5% profit. In the second scenario, the new profit is 20000 times 0.20, equaling 4000 rupees, and the new loss is 20000 times 0.25, equaling 5000 rupees, resulting in a net loss of 1000 rupees. Comparing this net loss to the previous net profit, 1000 is 50% of 2000. The result is 5%, 50%.

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