Bimalbabu sells two cars each of Rs. 99,000. He makes a profit of 10% on the first car, but incurs a loss of 10% on the second. What will be his percentage of profit or loss on the whole transaction ?

Options

A. 1%profit
B. 1%loss
C. 4%profit
D. 4%loss

Answer

To find the overall percentage of profit or loss on the transaction of selling two cars, we can follow these steps:

### Step 1: Calculate the Selling Price of Each Car
- Selling Price (SP) of each car = Rs. 99,000

### Step 2: Calculate the Cost Price of the First Car
- Profit on the first car = 10%
- Let the Cost Price (CP) of the first car be \( x \).
- Selling Price (SP) = Cost Price (CP) + Profit
- Therefore, \( 99,000 = x + 0.10x \)
- This simplifies to \( 99,000 = 1.10x \)
- To find \( x \), we divide both sides by 1.10:
\[ x = \frac{99,000}{1.10} = 90,000 \]
- So, the Cost Price of the first car is Rs. 90,000.

### Step 3: Calculate the Cost Price of the Second Car
- Loss on the second car = 10%
- Let the Cost Price (CP) of the second car be \( y \).
- Selling Price (SP) = Cost Price (CP) - Loss
- Therefore, \( 99,000 = y - 0.10y \)
- This simplifies to \( 99,000 = 0.90y \)
- To find \( y \), we divide both sides by 0.90:
\[ y = \frac{99,000}{0.90} = 110,000 \]
- So, the Cost Price of the second car is Rs. 110,000.

### Step 4: Calculate the Total Cost Price and Total Selling Price
- Total Cost Price (CP) = Cost Price of first car + Cost Price of second car
\[ \text{Total CP} = 90,000 + 110,000 = 200,000 \]
- Total Selling Price (SP) = Selling Price of first car + Selling Price of second car
\[ \text{Total SP} = 99,000 + 99,000 = 198,000 \]

### Step 5: Calculate the Overall Profit or Loss
- Overall Loss = Total CP - Total SP
\[ \text{Overall Loss} = 200,000 - 198,000 = 2,000 \]

### Step 6: Calculate the Percentage of Loss
- Percentage of Loss = (Overall Loss / Total CP) × 100
\[ \text{Percentage of Loss} = \left(\frac{2,000}{200,000}\right) \times 100 = 1\% \]

### Final Answer
Bimalbabu incurs an overall loss of **1%** on the whole transaction.

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