Consider the following statements:
I. An article bought for Rs 400 and sold for Rs 460 gives a profit of 15%.
II. An article bought for Rs 500 and sold for Rs 450 gives a loss of 12%.
Which of the above statements is/are correct?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Only I
Profit % and loss % are always worked out on the cost price.
I. An article bought for Rs 400 and sold for Rs 460 gives a profit of 15%. — Correct. The profit of Rs 60 is 15% of the cost price.
Profit \(=460-400=\) Rs 60
Profit % \(=\displaystyle\frac{60}{400}\times100=15\%\)
II. An article bought for Rs 500 and sold for Rs 450 gives a loss of 12%. — Incorrect. The loss of Rs 50 is 10% of the cost price, not 12%.
Loss \(=500-450=\) Rs 50
Loss % \(=\displaystyle\frac{50}{500}\times100=10\%\)