Question

Ramesh bought 10 cycles for Rs.500 each. He spent Rs.2, 000 on the repair of all cycles. He sold five of them for Rs.750 each and the remaining for Rs.550 each. Then the total gain or loss % is
A. Gain of $8\dfrac{1}{3}\% $
B. Loss of $8\dfrac{1}{3}\% $
C. Gain of $7\dfrac{2}{3}\% $
D. Loss of $7\dfrac{1}{7}\% $

Answer 1

Hint: Find the money he spent on the 10 cycles along with the cycle repair. This value is his investment. Then find the money he earned by selling all 10 cycles after repairing. Find the percentage in loss or gain by subtracting the spent money and earned money and then diving it with the spent money by 100.

Complete step-by-step answer:
We are given that Ramesh bought 10 cycles for Rs.500 each and he spent Rs.2, 000 on the repair of all cycles. He sold five of them for Rs.750 each and the remaining for Rs.550 each.
We have to find whether Ramesh had a profit or loss.
Money Ramesh spent on buying the cycles is $\left( {10 \times 500} \right) = 5000$rupees
And he spent Rs.2, 000 to repair these cycles.
Total money he spent on the cycles is $5000 + 2000 = Rs.7000$
And then he sold five of the cycles for Rs.750 each and remaining five for Rs.550 each.
Total money earned by Ramesh is
$
   = \left( {5 \times 550} \right) + \left( {5 \times 750} \right) \\
   = 2750 + 3750 \\
   = Rs.6500 \\
 $
As we can see, the earned amount is less than the spent amount. Therefore, Ramesh suffered a loss.
Loss percentage is
$
   = \dfrac{{\left( {7000 - 6500} \right)}}{{7000}} \times 100 \\
   = \dfrac{{500}}{{7000}} \times 100 \\
   = \dfrac{{50}}{7} = 7\dfrac{1}{7}\% \\
 $
Total loss suffered by Ramesh is $7\dfrac{1}{7}\% $
Therefore, the correct option is Option D, $7\dfrac{1}{7}\% $
So, the correct answer is “Option B”.


Note: Loss is the amount of money lost by a person or a business or an organization whereas profit is a gain of money. We get loss, when the income is less than the investment and we get profit when the investment is less than income. So, do not confuse loss with profit.