Question

Alia sells an article to Bedi at 20% profit and Bedi sells it back to Alia at 20% loss. In this transaction:

• A. Bedi lost 24%
• B. Alia gains 24%
• C. No loss or gain for either parties
• D. Alia loses 5%
• E. A and B

Answer 1

The correct option is B Alia gains 24%

Let the initial cost be = 100
Alia sold it for $=100\times \frac{120}{100}=Rs.120$
Bedi sold it back for $=120\times \frac{80}{100}=Rs.96$
Alia’s profit $=\frac{120-96}{96}\times 100=24\%$
Bedi’s loss = 20%