Question

Ahmed purchased an old scooter for Rs. 14625 and spent Rs. 3225on its repairs. Then, he sold it for Rs.16422. Find the gain or loss percent.

Answer 1

Hint: In this problem, find out the total cost price of the scooter. Next, if the selling price of the scooter is less than the cost price, it causes loss, and If the selling price of the scooter is greater than the cost price, it causes profit. Hence, find the loss or gain percent.

Complete step by step answer:
The amount spent for purchasing the scooter is Rs. 14625.
The amount spent for repairing the scooter is Rs. 3225.
Total amount invested by Ahmed on scooter is calculated as follows:
\[
  {\text{ Total amount = Scooter price + Repair cost}} \\
   \Rightarrow {\text{Total amount = }}14625 + 3225 \\
   \Rightarrow {\text{Total amount = Rs}}{\text{.17850}} \\
\]
The Selling price of the scooter is Rs.16422, which is less than the total amount invested on the scooter, hence, it causes loss.
Therefore, the percentage loss is calculated as shown below.
\[
  \,\,\,\,\,\,{\text{Percent loss = }}\dfrac{{{\text{cost price}} - {\text{selling price}}}}{{{\text{cost price}}}} \times 100 \\
   \Rightarrow {\text{Percent loss = }}\dfrac{{{\text{17850}} - {\text{16422}}}}{{17850}} \times 100 \\
   \Rightarrow {\text{Percent loss = }}\dfrac{{1428}}{{17850}} \times 100 \\
   \Rightarrow {\text{Percent loss = }}0.08 \times 100 \\
   \Rightarrow {\text{Percent loss = }}8 \\
\]

Thus, there is a loss of 8%.

Note: Profit and loss formula is used to find whether the price of an object is favorable for us or not. Every product has some cost price and selling price. Based on these prices, we used to find the profit or loss on buying or selling a product.