A man buys a machine for Rs.5,000. After one year, he sells it for Rs.6000. After two years, again he buys the same machine at Rs.8,000 and sells it for Rs.10,000. Find his overall profit percentage for both the transactions.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 23.08%
Given that
CP = 5000 and SP = 6000
Profit = (SP -CP) = 6000 - 5000 = 1000
Now new CP = 8000
New SP = 10000
Then, New Profit = 10000 - 8000 = 2000
total profit = 1000 + 2000 = 3000
Total CP = 5000 + 8000 = 13000
Overall percentage = [3000/13000] * 100 =300/13 = 23.08%