A person bought an article for Rs 1240 and sold it at a loss of 25%. With that money he bought a new article and sold it at a gain of 40%. Find his overall profit percentage.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 5%
The money from the first sale becomes the cost price of the second article. The overall profit is measured against the Rs 1240 he started with.
First sale \(\displaystyle =1240\times\frac{75}{100}=\) Rs 930
Second article costs Rs 930
Second sale \(\displaystyle =930\times\frac{140}{100}=\) Rs 1302
Overall profit \(=1302-1240=\) Rs 62
Profit % \(\displaystyle =\frac{62}{1240}\times100=5\%\)
His overall profit is 5%.