Multiple choice

A man sells two watches for $1000$ each. On one, he gains $12\%$ and on the other, he loses $12\%$. Find how much percent he gains or loses in the whole transaction.

  1. $1.44\%$ loss
  2. $1.44\%$ gain
  3. $2.5\%$ loss
  4. $2.5\%$ gain
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A Correct answer
Explanation

When selling two items at the same price with equal percentage gain and loss, the overall transaction is always a loss of (x^2)/100 percent. Here, (12^2)/100 = 144/100 = 1.44% loss.

AI explanation

Using the successive profit and loss formula for equal profit and loss percentages, Net Percentage equals negative P squared divided by 100. Substituting the 12 percent profit and 12 percent loss into the formula, Net Percentage equals negative 12 squared divided by 100, which is negative 144 divided by 100. This results in a net loss of 1.44 percent.

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