Question

a watch seller fixed his marked price fixing 25% profit on a cost price . but he sold the watch at 20% rebate. what was his gain or loss​

Answer 1

Answer:

Neither gain nor loss

Step-by-step explanation:

Let x be the cost price of the watch,

∵ Marked price were fixed 25% profit on a cost price,

Thus, the marked price = x + 25% of x

= x + 0.25x

= 1.25x

Also, after rebating ( or reducing) the price of the watch by 20%,

Selling price = Marked price - 20% of marked price

= 1.25x - 20% of 1.25x

= 1.25x - 0.2(1.25x)

= 1.25x - 0.25x

= x

Since, selling price = cost price,

Hence, there is no gain or loss.