Question

Rakesh purchased a TV for Rs. 5000 and paid Rs. 250 for its transportation. If he sold the TV for Rs.5075. Find his profit or loss percentage.

Answer 1

Hint: We can find the total expenditure of Rakesh by adding the cost of the TV and the transportation cost. Then we are given the selling price. We can subtract the expenses from the selling price. Based on the sign of the difference, we can determine whether there is loss or gain. We can divide the difference by the total expenditure and multiply to get the required percentage.

Complete step-by-step answer:
We are given that the TV was purchased for Rs. 5000.
It is also given that he paid Rs. 250 for its transportation.
So, his total expenditure of the TV is given by the sum of cost of the TV and its transportation cost.
 $ \Rightarrow Exp = 5000 + 250$
So, we have,
 $ \Rightarrow Exp = 5250$.
Now it is given that he sold the TV for Rs.5075.
 $ \Rightarrow Selling\,price = 5075$.
Now we can subtract the expenses from the selling price to get the profit or loss.
 \[ \Rightarrow \dfrac{{profit}}{{loss}} = Selling\,price - Exp\]
On substituting the values, we get,
 $ \Rightarrow \dfrac{{profit}}{{loss}} = 5075 - 5250$
On simplification, we get,
 $ \Rightarrow \dfrac{{profit}}{{loss}} = - 175$
As we got a negative value, there is a loss. So, we can write it as,
 $ \Rightarrow loss = 175$
Now the loss percentage is given by,
 $loss\% = \dfrac{{loss}}{{Exp}} \times 100\% $
On substituting the values, we get,
 $ \Rightarrow loss\% = \dfrac{{175}}{{5250}} \times 100\% $
On simplification, we get,
 $ \Rightarrow loss\% = 3.33\% $
Therefore, the required profit or loss percentage is $3.33\% $.

Note: We cannot determine whether there is a total loss or gain without finding the difference. We must subtract the selling price and cost price in the same order to find the difference. The difference will give the amount of money left with him. So, the negative difference means that amount of money is lost from him. Only the transportation cost while buying is taken by him and not the cost of transporting while selling.