csatmedium
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?
- A.Neither loss nor gain
- B.Loss 1%
- C.Gain 1%
- D.Gain 0.5%
▶ Answer & Explanation
Correct answer: C. Gain 1%
Let the cost price of the cell phone for Gopal be Rs. 100. He sells it to Ram at a 10% profit, so Ram pays Rs. 110. Then Ram sells it back to Gopal at a 10% loss. This loss is calculated on the price Ram paid, which is Rs. 110. So, Ram sells it back for Rs. 110 - (10% of 110) = Rs. 110 - Rs. 11 = Rs. 99. Gopal initially spent Rs. 100 and finally bought it back for Rs. 99. Therefore, Gopal made a net gain of Rs. 1.
Source: UPSC csat 2017