Kisna buys a cow for ₹15,000. After one year, he sells it for ₹18,500. After one year, again he buys the same cow at ₹19,000 and sells it for ₹22,300. What is the overall profit percentage of Kisna?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e 20%
First, Kisna buys the cow for ₹15,000. After one year, he sells it for ₹18,500, which means he makes a profit of ₹3,500 (i.e., ₹18,500 - ₹15,000).
After one more year, Kisna buys the same cow for ₹19,000 and sells it for ₹22,300, which means he makes a profit of ₹3,300 (i.e., ₹22,300 - ₹19,000).
Therefore, the total profit made by Kisna is ₹3,500 + ₹3,300 = ₹6,800.
The total cost of the cow is the sum of the two prices that Kisna paid to buy the cow: ₹15,000 + ₹19,000 = ₹34,000.
Now, we can calculate the overall profit percentage using the formula:
Profit Percentage = (Total Profit / Total Cost) x 100%
Substituting the values we calculated above, we get:
Profit Percentage = (₹6,800 / ₹34,000) x 100%
= 20%