On selling an article for Rs 123.40, the gain is 20% more than the amount of loss incurred on selling it for Rs 108. If the article is sold for Rs 120.75, then what is the gain /loss per cent?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Gain 5%
Concept
Profit = S.P - C.P
Loss = C.P - S.P
Application
Let the cost price be x
selling price = Rs. 108
Loss = (x - 108)
Other selling price = Rs. 123.40
Gain = (123.40 - x)
According to the question
(123.4 - x) = (x - 108) × (120/100)
1234 - 10x = 12x - 1296
22x = 2530
Upon solving
x = cost price = Rs 115
According to the question
Selling price = 120.75
Profit = 120.75 - 115
Profit = 5.75
Profit % = (5.75/115) × 100
Profit% = 5%