Multiple choice

A dealer sells two bags, one at a profit of 20% and the other at a loss of 20%. Find his profit or loss percentage.

  1. 7.5% loss

  2. 15% profit

  3. 4% loss

  4. 2% loss

  5. None of these
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C Correct answer
AI explanation

When two items are sold at the same profit and loss percentage, there is always a net loss. Using the net loss percentage formula, the loss equals (common percentage squared) divided by 100. Here, the common percentage is 20, so the net loss is (20 multiplied by 20) divided by 100, which equals a 4 percent loss.

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