Question

A sells his house worth \[Rs.\text{ }10\] lakhs to B at a loss of \[10\%.\] Later B sells it back to A at \[10\%\] profit. The result of the two transactions is:

Answer 1

Hint: We know about the meaning of percent. Percent means out of one hundred, for Example: \[10\%\] is equal to $\dfrac{10}{100}$. Here CP for the house is \[10\text{ }lakh.\] So we have to find the cost at which A sold to B at \[10\%\] of loss. Now find the cost at which B sells it back at the profit of \[10\%.\] By using this we can get the required answer.

Complete step by step solution:
A sells his house worth \[Rs.\text{ }10\] lakhs to B at a loss of \[10\%\] and later B sells it back to A at \[10\%\] profit.

Suppose that the number in house A is \[10\] lakhs.

We can calculate the loss on the sale at \[10\%\] as shown below.

$\text{Sale value}=\text{1,000,000}-\dfrac{\text{1,000,000}}{100}\times 10$
$=900,000$

Hence, the sale value is the value of house B that is \[900,000.\]

Now, we can calculate the profit on the sale at \[10\%\] as shown below,

$\text{Sale value}=9\text{00,000+}\dfrac{\text{900,000}}{100}\times 10$
$=900,000+90,000$
$=990,000$

Thus, at \[1,00,000\] loss plus the loss of \[90,000\] he sustained at buy back, A sold a home. \[1,90,000\] losses in total. B bought the house for \[9,00,000,\] on the other hand, and sold for \[9,90,000,\] making \[90,000\] profits.

Note: Here you see the calculation, how to get the result of the two transactions. Here you should know the difference between profit and loss formula. If the percent rate is in profit it means addition in the value and if the percent rate is in loss it means the subtraction from the value.