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A man bought a car for Rs. 442,500 at a 25% discount. How much profit or loss did he make from its original price if he sold it for Rs. 400,000?
Loss of Rs. 42,500
Loss of Rs. 90,000
Loss of Rs. 190,000
Profit of Rs. 42,500
Show Answer…
Correct Answer: Loss of Rs. 190,000

A man bought a car for Rs. 442,500 at a 25% discount. How much profit or loss did he make from its original price if he sold it for Rs. 400,000?

  1. Loss of Rs. 190,000
  2. Loss of Rs. 42,500
  3. Profit of Rs. 42,500
  4. Loss of Rs. 90,000

To solve this question, we need to find the original price of the car before the discount. We can use the formula:

Original price = Discounted price / (1 – Discount rate)

Plugging in the given values, we get:

Original price = 442,500 / (1 – 0.25) Original price = 442,500 / 0.75 Original price = 590,000

This means that the car was originally priced at Rs. 590,000 and the man got a discount of Rs. 147,500.

Now, to find the profit or loss, we need to compare the selling price with the original price. We can use the formula:

Profit or loss = Selling price – Original price

Plugging in the given values, we get:

Profit or loss = 400,000 – 590,000 Profit or loss = -190,000

This means that the man made a loss of Rs. 190,000 by selling the car for Rs. 400,000 while its original price was 590,000Rs

Therefore, the correct answer is that the man made a loss of Rs. 190,000.

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