Aarav owns a watch worth ₹10,000. He sells it to Bhavin at a profit of 15%. After some days, Bhavin sells it back to Aarav at 15% loss. Find the percentage profit or loss faced by Aarav.
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Correct answer: D
Explanation
The correct answer is Option 4 i.e. 17.25% profit
Cost of Aarav's watch = Rs. 10000
Aarav sold it to Bhavin at a profit of 15%.
Price of the watch for Bhavin = Cost price × [(100 + Profit%)/100] = 10000 × 115/100 = Rs. 11500
⇒ Profit earned by Aarav = 11500 - 10000 = Rs. 1500
Bhvin sold the watch back to Aarav at a loss of 15%.
Amount at which Aarav got the watch = Cost price × [(100 - Loss%)/100] = 11500 × 85/100 = Rs. 9775
⇒ Profit Aarav earned by getting the watch back = 10000 - 9975 = Rs. 225
⇒ Total amount of profit earned by Aarav = 1500 + 225 = Rs. 1725
Profit percentage of Aarav = [(Profit/Cost price)] × 100 = (1725 × 100)/10000 = 17.25%