Two pens are bought at the rate of Rs 20 each. A shopkeeper sells one at a profit of 25% and other at a loss of 25%. What will be the total profit or loss in the whole transaction?a.No profit no lossb.Loss of Rs 1c.Loss of Rs 2 d.Profit of Rs 1
Question
Two pens are bought at the rate of Rs 20 each. A shopkeeper sells one at a profit of 25% and other at a loss of 25%. What will be the total profit or loss in the whole transaction?a.No profit no lossb.Loss of Rs 1c.Loss of Rs 2 d.Profit of Rs 1
Solution
Let's break down the problem step by step:
Step 1: Calculate the cost price of the two pens. Since each pen costs Rs 20, the total cost price is 20 * 2 = Rs 40.
Step 2: Calculate the selling price of the first pen. The shopkeeper sells this pen at a profit of 25%. So, the selling price is 20 + (25/100)*20 = Rs 25.
Step 3: Calculate the selling price of the second pen. The shopkeeper sells this pen at a loss of 25%. So, the selling price is 20 - (25/100)*20 = Rs 15.
Step 4: Calculate the total selling price of the two pens. The total selling price is 25 + 15 = Rs 40.
Step 5: Compare the total cost price and the total selling price. If the total selling price is greater than the total cost price, there is a profit. If the total selling price is less than the total cost price, there is a loss. If the total selling price is equal to the total cost price, there is no profit no loss.
In this case, the total cost price (Rs 40) is equal to the total selling price (Rs 40). So, there is no profit no loss. The answer is (a) No profit no loss.
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