On selling an article for Rs 246.80, the gain is 20% more than the amount of loss insured on selling it for Rs. 216. If the articles is sold for Rs. 220.75, then what is the gain/loss percent (correct to nearest integer)?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Loss 4%
Given :
Profit when sold for Rs 246.80
Loss when sold for Rs 216
Gain is 20% more than loss
Formula used :
Loss = Cost price - selling price ---- (1)
Profit = Selling price - Cost price ----- (2)
Loss% = (Cost price - selling price)/(Cost price) × 100
Calculations :
let the cost price of the article be x
Using equation (1), we get
Loss = x - 216
Using equation (2), we get
Profit = 246.80 - x
According to the question
⇒ (246.80 - x) = (120/100) × (x - 216)
⇒ 2468 - 10x = 12x - 2592
⇒ 22x = 5060
⇒ x = 230
Cost price of the article is 230
Now, we have Selling price of the article = 220.75
⇒ Loss = 230 - 220.75
⇒ 9.25
Using equation (3), we get
⇒ Loss % = (9.25/230) × 100
⇒ 4.021
⇒ 4 %