Aarav owns a watch worth ₹10,000. He sells it to Bhavin at a profit of 15%. After some days, Bhavin sells it back to Aarav at 15% loss. Find the percentage profit or loss faced by Aarav.
Correct Answer :
17.25% profit
Solution :
The correct option is 17.25% profit.
Let us break down the transactions step-by-step to calculate Aarav's total profit percentage.
Step 1: Aarav sells the watch to Bhavin
Initial cost price of the watch for Aarav = ₹10,000.
Aarav sells it at a profit of 15%.
Profit made by Aarav on the first sale = 15% of ₹10,000
= = ₹1,500
Selling Price for Aarav (which is the Cost Price for Bhavin) = ₹10,000 + ₹1,500 = ₹11,500.
At this point, Aarav has ₹11,500 in cash from selling the watch.
Step 2: Bhavin sells the watch back to Aarav
Cost price of the watch for Bhavin = ₹11,500.
Bhavin sells it back to Aarav at a loss of 15%.
Loss incurred by Bhavin = 15% of ₹11,500
= = ₹1,725
Price paid by Aarav to buy back the watch = ₹11,500 - ₹1,725 = ₹9,775.
Step 3: Calculate Aarav's overall financial gain (net profit)
Aarav received ₹11,500 from the first sale and spent ₹9,775 to buy it back.
Net cash gained by Aarav = ₹11,500 - ₹9,775 = ₹1,725.
Since Aarav still has his original watch back plus an extra cash amount of ₹1,725, his total profit is ₹1,725.
Step 4: Calculate Aarav's percentage profit
Percentage profit =
= = 17.25%
Therefore, Aarav faced an overall profit of 17.25%.
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