Question

A person buys a brand new Honda bicycle for Rs.800. He uses it for a year and then sells it. He makes a profit of 10% in this transaction. Then, again, he buys a new cycle but finds that the price has gone up by 20%. He uses the new cycle for a year and then sells it for a profit of 30%. Find the average annual profit of the person through these transactions

Answer 1

Answer:

Step-by-step explanation:

Answer 2

GIVEN: Cost of bicycle = 800; profit earned on this bicycle= 10% cost of bicycle rise = 20% ; profit on new bicycle= 30%

TO FIND: Average profit

SOLUTION:

Cost of bicycle= 800

Profit = Selling Price - Cost Price

Selling Price = 800 + 10%  of 800

Selling Price = 800 + 80

                    = 880

Profit = 880 - 800

            = 80

Cost of new bicycle = 800 + 20% of 800

                               = 800 + 160

                                = 960

Selling Price = 30% of 960 + 960

                     = 288 + 960

                       = 1,248

Profit on new bicycle

Profit = Selling Price - Cost Price

          = 1,248 - 960

           = 288

Average Profit = 288 + 80 /2

                       = 368/2

                      = 184

The average Profit earned by selling both bicycles is 184.