Last year Neil bought two watches. This year he sold them for ₹ 15,000 each. On one, he made a 25% profit and on the other, he had a x% loss. If his net loss is ₹2000, then find the value of x.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 25.
Let the cost price of the first watch = C1
Let the cost price of the second watch = C2
Neil sold both watches for ₹15,000 each, so the selling prices are:
S1 = 15,000, S2 = 15,000
On the first watch, Neil made a 25% profit.
Thus:
S1 = C1 × (1 + 25/100)
⇒ 15,000 = C1 × 1.25
⇒ C1 = 15000/1.25 = 12000
Neil's total loss is ₹2,000. The total cost price of both watches is:
⇒ C1 + C2 = Total Selling Price + Net Loss
⇒ 12,000 + C2 = 15,000 + 15,000 + 2,000
⇒ 12,000 + C2 = 32,000
⇒ C2 = 32,000 − 12,000 = 20,000
On the second watch, Neil incurred a loss of x%. The selling price is related to the cost price by:
S2 = C2 × (1− x/100)
⇒ 15,000 = 20,000 × (1 − x/100)
⇒ 15000/20000 = 1 - x/100
⇒ 0.75 = 1 - x/100
⇒ x/100 = 0.25
⇒ x = 25%