Question

Madhu and kavita purchased a new house for ₹ $ 3,20,000. $ Due to some economic problem they sold the house for ₹ $ 2,80,000 $
Find
(i) the loss incurred
(ii) the loss percentage

Answer 1

Hint: Use the relation between profit, loss and Cost price. If the cost price is greater than the selling price, then the seller will be at a loss. Else the deal earns profit.

Complete step-by-step answer:
Cost price = ₹ $ 3,20,000 $
Selling price = ₹ $ 2,80,000 $
 $ Loss = CP - SP $
Where,
CP is cost price
SP is selling price
By substituting the values in the above equation, we get
 $\Rightarrow Loss = 320000 - 280000 $
= ₹ $ 40000 $
Therefore, loss incurred on Madhu and Kavita will be ₹ 40000
Now, we will get the percentage
 $\Rightarrow loss\% = \dfrac{{loss}}{{CP}} \times 100 $
  = \dfrac{{40000}}{{320000}} \times 100 $
By cancelling the zeros from numerator and denominator, we get
 $ = \dfrac{4}{{32}} \times 100 $
 $ = \dfrac{{100}}{8} $
 $ \Rightarrow loss\% = 12.5\% $
Therefore, loss percentage for the loss incurred is $ 12.5\% $

Note: You need to remember that both profit and loss have the same terms in their formulae. Only the difference is off the sequence in which those terms are used. For example,
 $ profit = SP - CP $ but $ loss = CP - SP $