Question : A trader buys two articles for Rs. 4000 each. While selling if he gains 12.5% on one and loses 20% on the other, then what will be the overall loss percentage?
Option 1: 2.5%
Option 2: 3.75%
Option 3: 5%
Option 4: 5.25%
Correct Answer: 3.75%
Solution :
Total cost price = 4000 + 4000 = Rs. 8000
Total cost price = (4000 + 0.125 $×$ 4000) + (4000 – 0.2 $×$ 4000) = 4500 + 3200 = Rs. 7700
$\therefore$ Overall Loss % = $\frac{8000-7700}{8000}\times 100= \frac{300}{80}$ = 3.75%
Hence, the correct answer is 3.75%.
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