A dishonest trader using a faulty balance makes a profit of 5% while buying as well as while selling his goods. His actual gain percent in the whole process amounts to,
10.25%
While buying the trader makes 5% profit. That means he buys Rs.105 worth of goods by paying Rs.100.
While selling he makes again a profit of 5%. But this time the profit percentage is to be applied to Rs.105 to get an idea of net profit with cost price as the original cost price.
Applying the second profit of 5% on Rs.105, we get a sale price = 105(1+0.05) =105 ×1.05 = 110.25
So the net profit is,
110.25 − 100 =10.25.
So, the gain percent in the whole process amounts to 10.25 %