Question

Ram sells a commodity to Rahim at a profit of 10%. Rahim sells the commodity back
to Ram at a loss of 10%. In this transaction:
A) Ram neither losses nor gains
B) Ram makes a profit of 11%
C)Ram makes a profit of 20%
D)Rahim loses 20%


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Answer 1

Answer:

Ram makes a profit of 11%

Step-by-step explanation:

Ram sells a commodity to Rahim at a profit of 10%. Rahim sells the commodity back  to Ram at a loss of 10%.

Let say commodity Price = 100 C

Ram sells at 10 % Profit

10 % profit = (10/100) 100C  = 10C

Ram sells at  100 C + 10C = 110C

Rahim sells the commodity at Loss of 10 %

10% Loss =  (10/100)110C = 11C

Rahim sells at 110C - 11C = 99C

Ram buys at 99 C

Ram profit = 110C - 99C = 11C

Ram Profit % = (11C/100C) * 100 = 11 %

Ram makes a profit of 11%