A car dealer buys a used car which is marked at 25 lakhs. He gets a discount…
2025
A car dealer buys a used car which is marked at 25 lakhs. He gets a discount of 20%. He is also offered an additional 5% discount on the already discounted price since he does full payment. If he had to spend 6 lakhs on the maintenance of the car, how much is his net gain or loss?
- A.
5% profit
- B.
No net gain or loss
- C.
15% loss
- D.
2% loss
Attempted by 2 students.
Show answer & explanation
Correct answer: B
Step-by-Step Solution
To determine the net gain or loss, we need to calculate the total cost incurred by the dealer, which includes the purchase price after all discounts and the additional maintenance expenses.
Calculate the purchase price after successive discounts:
Marked Price = 25 Lakhs
First discount of 20%: Price = 25 - (20% of 25) = 25 - 5 = 20 Lakhs.
Additional 5% discount on the discounted price (20 Lakhs): Discount amount = 5% of 20 = 1 Lakh.
Final purchase price = 20 - 1 = 19 Lakhs.
Calculate the total cost price:
The dealer also spends 6 Lakhs on maintenance.
Total Cost Price = Purchase Price + Maintenance
Total Cost Price = 19 + 6 = 25 Lakhs.
Determine net gain or loss:
The car's marked price is 25 Lakhs. Assuming the dealer intends to sell it at the marked price:
Selling Price = 25 Lakhs
Total Cost Price = 25 Lakhs
Since Selling Price equals Total Cost Price, there is no net gain or loss.