A trader fixes selling prices of commodities after increasing them by 10% and…

20242025

A trader fixes selling prices of commodities after increasing them by 10% and offers 10% rebate on selling prices. The per cent gain or loss is

  1. A.

    10% gain

  2. B.

    0.9% gain

  3. C.

    1.2% loss

  4. D.

    1% loss

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Show answer & explanation

Correct answer: D

Step-by-Step Solution

To calculate the net gain or loss when a price is increased by a certain percentage and then decreased by the same percentage, we can use the concept of successive percentage changes.

  1. Use the base value method (100):

    • Assume the original cost price (CP) of the commodity is Rs. 100.

    • The trader increases the price by 10%: New Marked Price = 100 + (10% of 100) = Rs. 110.

    • The trader then offers a 10% rebate (discount) on this marked price: Discount amount = 10% of 110 = Rs. 11.

    • Final Selling Price (SP) = 110 - 11 = Rs. 99.

  2. Calculate Gain or Loss:

    • Cost Price = Rs. 100

    • Selling Price = Rs. 99

    • Since the SP is less than the CP, there is a loss.

    • Loss amount = CP - SP = 100 - 99 = Rs. 1.

    • Loss percentage = (Loss / CP) * 100 = (1 / 100) * 100 = 1% loss.

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