Question

A man bought a car for Rs.75000. He spent Rs. 9000 on repairs and spent Rs.1500 on other things. He sold the car for Rs.120000. Find his gain percent.
A. 10%
B. 20%
C. 30%
D. 40%

Answer 1

Hint: This question is based on the Profit-Loss concept.
Cost Price (CP): The amount paid for a product or commodity to purchase, it is called cost price. Also denoted as CP.
Cost price further divided into two different categories.
Fixed cost: The fixed cost is constant, It does not vary under any circumstances.
Variable cost: It could vary depending as per the number of units.

Selling Price(SP): The amount for which the product is sold is called selling price .It is usually denoted as SP.
Profit(P): When the selling price is more than the cost price ,then it is called profit.It is also called gain.
  \[Profit{\text{ = }}SP - CP\]
  Profit percent=\[\dfrac{{profit}}{{CP}} \times 100\]
Loss(L): When the amount of cost price is more than selling price, then it is called loss.
Loss =CP-SP
Loss percent=$\dfrac{{Loss}}{{CP}} \times 100$

Complete step-by-step answer:
Step1: \[cost{\text{ }}price = 75000 + 9000 + 1500 = 85500\]
Step 2: selling price =120000
Step3: here selling price is greater than cost price so there is profit
 \[Profit{\text{ = }}SP - CP\]
\[\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\; = 120000 - 85500 = 34500\]
 Step4: Profit percent=\[\dfrac{{profit}}{{CP}} \times 100\]
 =$\dfrac{{34500}}{{85500}} \times 100$=40.35%(we can take it as approximately 40%.)
  =40%
$\therefore $ Option D is the correct answer.

Note: Profit and Loss both are calculated on cost price.