Madhav purchased an item for ₹42,000 and sold it at a loss of 20%. With that amount, he purchased another item and sold it at a gain of 30%. What is the overall gain (in ₹)?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 1680.
The cost price of the first item = ₹42,000
Loss percentage = 20%
Selling price after the 20% loss = 42000 × (1 - 20/100)
⇒ 42000 × 0.8 = ₹33600
Now,
Madhav used ₹33,600 to purchase another item.
Gain percentage = 30%
The selling price after the 30% gain = 33600 × (1 30/100)
⇒ 33600 × 1.3 = ₹43680
⇒ Overall gain = Final amount - Initial amount
⇒ 43680 - 42000 = ₹1680
Thus, the overall gain is ₹1,680.