The cost price of a car was ₹150000. Raju sold it to Montoo at a profit of 5%, and later Montoo sold it back to Raju at 2% loss. Find The total profit or loss in the entire transaction.

Correct option is A

Given:

The cost price of car = Rs.150000

Formula:

Profit = SP - CP

SP = $$CP × \frac{(100 + Profit \%)}{100}$$​​

Solution:

SP for Raju = 150000 × $$\frac{105}{100}$$​ = Rs.157500

CP for Montoo = SP for Raju

Then,

CP for Raju = 157500 × $$\frac{98}{100}$$​ = Rs.154350

Total profit Raju had = 157500 - 154350 = Rs.3150

∴ Raju's profit in entire transaction is Rs.3150 

Confusion Point: 

After Selling to Montoo, Raju already has Rs.157500, So he pay to Raju from this amount not from Rs. 15000

That's why we do 157500 - 154350 = Rs.3150 not 154350 - 150000 = 4350