A house worth Rs. 1,00,000 is sold by A to B at a profit of 6%. B sells the house back to A at a 3% loss. What is the gain or loss of A in the entire transaction?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Gain of Rs. 2,820.
Selling price = Cost price × (100 + profit %)/100
Selling price = Cost price × (100 - loss %)/100
The cost price of the house for A = Rs. 1,00,000
Cost price of the house for B = 1,00,000 × 106/100 = 106,000
B sells the house back to A at a 3% loss,
Now, the cost price of the house for A = 106000 × 97/100 = Rs 102820
So, profit earn by A = 102820 - 100000 = Rs 2820