By selling a mobile phone for ₹23,856, Ramesh gains 20%. If he sells it for ₹20,580, find his gain or loss percentage (correct to two places of decimals).
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Gain 3.52%.
Let the Cost Price be CP.
Given SP = ₹23,856 and Gain% = 20%
CP = SP / (1 + Gain%)
⇒ CP = 23,856 / (1 + 0.20)
⇒ CP = 23,856 / 1.20
⇒ CP = 19,880
Now, Selling Price = ₹20,580
Gain or Loss Percentage = ((Selling Price - Cost Price) / Cost Price) × 100
⇒ Gain or Loss Percentage = ((20,580 - 19,880) / 19,880) × 100
⇒ Gain or Loss Percentage = (700 / 19,880) × 100
⇒ Gain or Loss Percentage = 3.52%
Since the Selling Price is greater than the Cost Price, it is a Gain.