Ram purchased an item for Rs. 8,200 and sold it at a gain of 35%. From that amount he purchased another item and sold it at a loss of 20%. What is his overall gain/loss?

Correct option is B

Given:

1. Ram purchased the first item for $$8200 \, \text{Rs}$$​ .

2. He sold it at a gain of 35% .

3. From the amount received, he purchased another item and sold it at a loss of 20% .

4. We need to calculate his overall gain or loss.

Formula Used:

1. Selling price (SP) with gain:

​$$\text{SP} = \text{Cost Price} \times \left(1 + \frac{\text{Gain Percentage}}{100}\right)$$​

2. Selling price (SP) with loss:

​$$\text{SP} = \text{Cost Price} \times \left(1 - \frac{\text{Loss Percentage}}{100}\right)$$​

3. Overall gain/loss:

​$$\text{Overall Gain/Loss} = \text{Final Amount Received} - \text{Initial Investment}$$​

Solution:

1. Calculate the selling price of the first item:

​$$\text{SP}_1 = 8200 \times \left(1 + \frac{35}{100}\right)$$​

​$$\text{SP}_1 = 8200 \times 1.35 = 11,070 \, \text{Rs}$$​

2. He uses $$11,070 \, \text{Rs}$$​ to purchase the second item.

3. Calculate the selling price of the second item (sold at a loss of 20% ):

​$$\text{SP}_2 = 11,070 \times \left(1 - \frac{20}{100}\right)$$​

​$$\text{SP}_2 = 11,070 \times 0.80 = 8,856 \, \text{Rs}$$​

4. Find the overall gain or loss:

​$$\text{Overall Gain/Loss} = \text{Final Amount Received} - \text{Initial Investment}$$​

​$$\text{Overall Gain/Loss} = 8,856 - 8,200 = 656 \, \text{Rs (Gain)}$$​

Final Answer:

Ram's overall gain is Rs. 656