A man purchased a car for ₹12 lakhs and was insured for 80% of the cost. He sold the car at a 15% loss, but had not yet delivered it to the buyer when he met with an accident. After the accident, the car was damaged a lot and the insurance company paid 90% of the insured amount. The net difference in the two transactions is:

₹1.56 lakhs

We know that,

a% of a number = Actual number × (a/100)

We have,

A man purchased a car for price = Rs. 12 lakh

Car was insured at  = 80% of the cost of the car

Car was sold at the loss of = 15%

The percentage of the insured amount paid by the insurance company = 90%

According to the question,

SP = 12,00,000 × (\(\frac{85}{100}\) ) = 10,20,000

Amount paid by the insurance company = 12,00,000 × (\(\frac{80}{100}\) ) × (\(\frac{90}{100}\) ) = 864000

Required difference = 10,20,000 - 8,64,000 = 1,56,000 or 1.56 lakhs