Question

Ashok bought a cycle for Rs. 720 and sold it for Rs. 698.40, find the loss percent.

Answer 1

Hint: Here, we will find the net loss in amount on selling the cycle i.e., difference between cost price of cycle and selling price of cycle, as (Loss = C.P. – S.P.) and use formula for finding loss % i.e.
Loss % =$\dfrac{{{\text{Loss}}}}{{{\text{Cost price}}}} \times 100$.

Complete step by step answer:
Given, Ashok bought a cycle for Rs. 720 and sold it for Rs. 698.40.
We need to find the loss percent on selling the cycle.
Cost price of the cycle is Rs. 720 and selling price of the cycle is Rs. 698.40.
Loss (in Rs) in selling cycle = Cost price of cycle – Selling price of cycle
Loss = Rs. 720 – Rs. 698.40
Loss % = Rs. 21.60
As loss % is always calculated with respect to cost price, we have formula for loss % as
Loss % = $\dfrac{{{\text{Loss}}}}{{{\text{Cost price}}}} \times 100$
 Putting values of loss and cost price in formula, we have
 Loss % = $\dfrac{{21.60}}{{720}} \times 100$
On simplifying, we have
Loss % = $\dfrac{{2160}}{{720}}$
Loss % = $\dfrac{{216}}{{72}}$
Loss % = $3%$

Therefore, the loss percentage in the selling cycle for Rs 698.40 is 3%.

Note:
Profit % and loss % are always calculated on the cost price of the item. If the cost price is greater than the selling price there is a loss, and if the selling price is greater than the cost price there is a loss in selling the item. Alternatively, we can use the direct formula for finding loss %, loss % = $\left( {1 - \dfrac{{S.P.}}{{C.P.}}} \right) \times 100$, and in case of profit %, profit % = $\left( {\dfrac{{S.P.}}{{C.P.}} - 1} \right) \times 100.$ S.P. is selling price of the item and C.P. is cost price of the item.