Q123
ArithmeticPercentage, Profit & Loss
A cloth merchant sold half of his cloth at 20% profit, half of the remaining cloth at 20% loss and the rest was sold at its cost price. In the total transaction, his gain or loss will be
- a.5% profit
- b.Neither loss nor gain
- c.5% loss
- d.10% profit
Answer: (A) 5% profit
On a cost of 100: half (50) gains 10, a quarter (25) loses 5 and the last quarter (25) breaks even. Net gain = 10 − 5 = 5 on 100, a 5% profit. 'Neither loss nor gain' wrongly treats the 20% profit and 20% loss as cancelling, though they apply to different quantities.