QUESTION

CSAT

Easy

Maths

Prelims 2017

Gopal bought a cell phone and sold it to Ram at $10\%$ profit. Then Ram wanted to sell it back to Gopal at $10\%$ loss. What will be Gopal’s position if he agreed?

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Explanation

Let cost price for Gopal = Rs. $100$

He sold it to Ram at $10$ % profit. So, his selling price = $100 + 10$ % of $100 = 100 + 10 =$ Rs. $110$

Now, if Ram resales it to Gopal at $10$ % loss, his selling price = $110 - 10$ % of $110 = 110 - 11 =$ Rs. $99$ As far as Gopal is concerned, in this second transaction, by buying a Rs. $100$ cell at Rs $99$ , he registers a gain of $1$ %.