Last year Mr. A bought two paintings. This year he sold them for Rs, 20,000 each. On one, he made a 25% profit and on the other he had a 25% loss.Then his net profit or loss is
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. He lost more than Rs.2000.
SP of each painting = 20000
profit on 1st painting = 25%
loss on 2nd painting = 25%
⇒ CP + profit = SP
⇒ Profit = Profit%/100 × CP
⇒ CP + 1/4 CP = SP
⇒ 5/4 CP = SP { SP =20000}
⇒ CP = 4/5 × 20000 = 16000
⇒ CP - loss = SP
⇒ loss = loss%/100 × CP
⇒ CP - 1/4 CP = SP
⇒ 3/4 CP = SP { SP =20000}
⇒ CP = 4/3 × 20000 = 26666.66
⇒ Total CP = 16000 + 26666.66 = 42666.66
⇒ total SP = 20000 + 20000 = 40000
⇒ loss = 42666.66 - 40000 = 2666.66
∴ loss is more than 2000