Question

Mr Mehta purchased a second car for Rs. 80,000 and spent Rs.15,000 on repairs. After some time he sold the car for Rs. 90,000. Find the profit or loss percentage.

Answer 1

Hint: Find the total amount spent on purchasing the car and repairing it. This will be the cost price of the article. Hence find whether there was a loss or gain in purchasing and selling the item. Hence find the profit of loss %age.

Complete step-by-step answer:
Cost of purchasing the car = Rs. 80,000
Amount spent on repairing the car = Rs. 15,000
Hence the total cost price of the car = Cost of Purchasing + Repairing costs = Rs. 80,000+Rs. 15,000 = Rs. 95,000.
Also selling price = 90,000.
So, we have the selling price less than the cost price.
Hence there was a loss in the whole trade.
We know that Loss = Cost price – Selling price = 95,000 – 90,000 = Rs. 5000.
We know that loss% $=\dfrac{loss}{C.P}\times 100$
Hence, we have
Loss% $=\dfrac{5000}{95000}\times 100=\dfrac{500}{95}=5.26%$
Hence the loss %age = 5.26%.

Note: The cost of repair is an indirect addition to the cost price. A few examples of such price additions are transportation charges, registration charges, etc. These prices are added to the cost price of the item purchased to reveal the total purchasing cost. The cost price of the article that is then found is called Net cost price.