Manjeet bought a second-hand motorbike for Rs 22,000 and spent Rs 3,000 on its overhauling and maintenance. He then sold it with 12% profit. If he had sold it for Rs 500 less, then what would have been his profit percentage?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 10%
Given:
Manjeet bought a second-hand motorbike for Rs 22,000 and spent Rs 3,000 on its overhauling and maintenance.
He then sold it with 12% profit
Formula used:
Selling price = Cost price + profit ----- (1)
Profit = (Selling price - cost price)/cost price × 100 ------ (2)
Calculations:
Total cost price = 22000 + 3000 = 25000
Using equation (1)
Selling price = 25000 + 25000 × 0.12 = 28000
He then sold the bike at Rs 500 less
Selling price = 28000 - 500 = 27500
Using equation (2), we get
Required profit percentage = (27500 - 25000)/25000 × 100 = 10%