Question

B. A person in the first year of his business makes a profit of 20% on his capital and
in the second year sustains a loss of 20% on his new capital. Does he gain or lose
in the long run? Would it be same if he had lost 20% in the first year and gained
20% in the second year.
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Answer 1

Answer:

Let Cost Price = 100

Profit = 25 x 20% = 5

Loss = 75 x 20% = 15

Net loss = 10

Net Loss as % = 10/100 x 100 = 10%

:-)

Answer 2

Answer:

Let cost price =100

profit = 25×20%=5

loss=75×20%=15

Net loss=10

Net loss as %=10/100×100=10%

: It makes his loss in business

:Yes it is same