Select the correct answerRam sold two horses at the same price. In one he gets a profit of 10% and in the other he gets a loss of 10%. Then Ram gets?OptionsNo loss or profit2% loss1% loss1% profit

The correct answer is 1% loss.

Here's the step-by-step explanation:

Let's assume the cost price of each horse is $100 (for simplicity).

For the first horse, Ram sells it at a 10% profit, which means he sells it for $110.

For the second horse, Ram sells it at a 10% loss, which means he sells it for $90.

So, in total, Ram spent $200 (100+100) to buy the horses and received$200 (110+90) from selling them.

However, the loss or profit percentage is always calculated on the cost price, not the selling price.

So, the loss is calculated as follows:

Loss = Cost Price - Selling Price Loss = $200 -$200 = $0

But, when we calculate the loss percentage, we get:

Loss% = (Loss / Cost Price) * 100 Loss% = (0 / 200) * 100 = 0%

This would suggest that there is no loss or profit. However, this is a common misconception.

In reality, when two transactions of equal amounts (one of profit p% and the other of loss p%) are involved, the overall effect is always a loss given by (p^2)/100 %.

So, in this case, the overall effect is a loss of (10^2)/100 % = 1% loss.

So, Ram gets a 1% loss.