Question

Hanif purchased a scooter for Rs.$12500$. He spent Rs.$1200$ on painting the scooter and Rs.$550$ on polishing the scooter. He then sold the scooter for Rs. $16530$. Find the profit percent in the whole transaction.

Answer 1

Hint:The profit percent in the overall transaction can be find using total cost and selling price. Since he has done extra expense on the scooter, that too must be included in the total cost. Thus, we get the required answer.

Formula used:Profit in a transaction is the difference between the overall income and the overall expense.
$ \Rightarrow {\text{Profit}} = {\text{income}} - {\text{expense}}$
Profit percent $ = \dfrac{{{\text{profit}}}}{{{\text{expense}}}} \times 100$.

Complete step-by-step answer:
Given that the scooter is purchased for Rs. $12500$ and painted and polished for Rs. $1200$ and Rs. $550$ respectively.
We have to calculate the profit percent.
For that we have to find the total expense and total income.
Let the total expense be ${T_E}$ and total income be ${T_{_I}}$.
Total expense includes (cost) price of the scooter, its painting and polishing cost that is, ${T_E} = 12500 + 1200 + 550 = 14250$.
Total income includes selling price of scooter only which is equal to $16530$.
$ \Rightarrow {T_I} = 16530$
Therefore, the profit is the difference of income and expense.
Profit, $P = {T_I} - {T_E} = 16530 - 14250 = 2280$
Profit percent $ = \dfrac{{{\text{profit}}}}{{{\text{expense}}}} \times 100 = \dfrac{P}{{{T_E}}} \times 100 = \dfrac{{2280}}{{14250}} \times 100 = 16$
So, the profit percent in the whole transaction is $16\% $.

Note:If the scooter was sold directly after purchasing, means there were no additional expenses, then the profit is just the difference of selling price and cost price. If the expense exceeds the income then we have a loss which is calculated by subtracting the income from the expense.