Multiple choice

A man sold two watches, each for Rs. $495$. If he gained $10\%$ on one watch and suffered a loss of $10\%$ on the other, then what is the loss or gain percentage in the transaction?

  1. $1\%$ gain
  2. $1\%$ loss
  3. $\dfrac {100}{99}\%$ loss

  4. No gain no loss
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When two items are sold at the same price with equal percentage gain and loss, the overall result is a loss of (x^2 / 100)%. Here, (10^2 / 100) = 1% loss.

AI explanation

When two items are sold at the same selling price with a gain of x percent and a loss of x percent, the net result is always a loss. The formula for this net loss percentage is x squared divided by 100. Substituting x as 10 gives 10 squared divided by 100. This equals 100 divided by 100, which results in a 1 percent loss.

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