Question

What profit or loss percentage did deepak earn if he purchased an item rs.3787 and sold it 4/5 of its cost price?

a Loss of 20 percent
b Gain of 25 percent
c Neither gain nor loss
d Loss of 25 percent
e None of these

Answer 1

Deepak incurred a loss of 20% by selling the item for 4/5 of its cost price.

Step-by-step explanation:

To calculate the profit or loss percentage, we need to find the selling price and the cost price of the item. According to the given information, Deepak purchased the item for Rs. 3787 and sold it for 4/5 of its cost price.

The selling price can be calculated as (4/5) * cost price = (4/5) * 3787 = Rs. 3030.4.

The profit or loss can be calculated as selling price - cost price = 3030.4 - 3787 = -756.6.

To find the profit or loss percentage, we divide the profit or loss by the cost price and multiply by 100.

Profit or Loss Percentage = (Profit or Loss / Cost Price) * 100 = (-756.6 / 3787) * 100 = -20%.

Therefore, Deepak incurred a loss of 20%.