Selling price of a house and a shop is equal and that is ₹ 1 Lakh each. The shop is sold at 20% profit and the house is sold at 20% loss. Find amount of profit or loss during the whole transaction.
Answer & explanation
Correct answer: option 2
CP of 1st shop = 1 lakh × \(\frac{100}{120}\) = \(\frac{5}{6}\) lakh
CP of 11nd shop = 1 lakh × \(\frac{100}{80}\) = \(\frac{5}{4}\) lakh
total CP = \(\frac{5}{6}\) + \(\frac{5}{4}\) = \(\frac{10+15}{12}\)
= \(\frac{25}{12}\) lakh
Profit or loss = 2 - \(\frac{25}{12}\) = - \(\frac{1}{12}\) lakh (loss)