A shopkeeper earns 10% on an investment but loses 20% on another investment. If the ratio of the two investments is 2 : 3, then the combined loss percentage is:
Answer & explanation
Correct answer: option 4
Since, ratio of two investment = 2 : 3
Let the two investment be Rs. 20 and Rs.30 respectively.
Initial total investment = 20 + 30 = Rs. 50
∴ Investment after 10% gain = Rs. 22
Similarly, Investment after 20% loss = Rs. 24
Total investment after the gain and loss = 22 + 24 = 56.
Total gain = 56 – 50 = Rs. 6
Gain% = \(\frac{Gain}{Initial\;Amount}\) × 100 = \(\frac{6}{50}\) × 100 = 12%