Question

A man sold two watches for Rs 3750 each. On one he gained 5%, and on the other, he lost 5%. What was his total gain or loss percentage?

• A. 0.25%
• B. $\frac{1}{2}$%
• C. $\frac{1}{4}\%$
• D. Insufficient data

Answer 1

Answer: (A), (C)

The correct options are
A

0.25%

C

$\frac{1}{4}\%$

Selling Price of watch no.1 = Rs. 3750

Let cost price of wach no.1 = W1

Profit = 5%

When profit occurs

Selling Price = $\frac{(100+gain\%)}{100}$ x Cost Price

Rs.3750 = $\frac{(100+5)}{100}$ x W1

W1 = Rs. $\frac{3750\times 100}{105}$

W1 = Rs. 3571.42

Now,

Selling Price of watch no.2 = Rs. 3750

Let cost price of wach no.2 = W2

Loss = 5%

When Loss occurs

Selling Price = $\frac{(100-loss}{100}$ x Cost Price

Rs.3750 = $\frac{(100-5)}{100}$ x W2

W2 = Rs. $\frac{3750\times 100}{95}$

W2 = Rs. 3947.36

So, Cost price of both watches = Rs. 3571.42 + Rs. 3947.36 = Rs 7518.78

Selling price of both watches = Rs. 3750 + Rs. 3750 = Rs. 7500

Loss = Cost Price - Selling price = Rs. 7518.42- Rs. 7500 = Rs. 18.42

Loss% = $\frac{loss}{Costprice}$ x 100 %

Loss% = $\frac{18.42}{7518.78}$ x 100 % = $\frac{1}{4}\%$ = 0.25%