A trader sells two LED sets at the same price. There is a gain of 20% on one LED and 20% loss on the second LED. Which of the following statements is true?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. The trader makes a loss of 4%.
When the selling price of the articles is same and the value of profit on one article and loss on another article are numerically equal, then overall profit/loss percentage is calculated as:
Overall loss = +Profit - Loss - (Profit × Loss)/100
According to the given question,
Overall profit/loss = 20 - 20 - (400/100)
⇒ 4% loss