Multiple choice

A trader buys two items for Rs. 12000 each. He gets a profit of 25% on one item and incurs a loss of 20% on the other. What is the total proft/loss percentage of the trader?

  1. 5%

  2. 3%

  3. 4%

  4. 2.5%

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

Total CP = 12000 + 12000 = 24000. Profit on first = 0.25 * 12000 = 3000. Loss on second = 0.20 * 12000 = 2400. Net profit = 3000 - 2400 = 600. Profit percentage = (600 / 24000) * 100 = 2.5%.

AI explanation

Since the cost prices of both items are equal, the overall profit or loss percentage is the simple average of the two percentages. Adding the 25% profit and the 20% loss gives a net result of 5%. Dividing this 5% by the 2 items yields an overall profit percentage of 2.5%.

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