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Que: John sold his car at a loss of 20 percent of the price that he originally paid for the car,.....

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Que: John sold his car at a loss of 20 percent of the price that he originally paid for the car,.....

by Max@Math Revolution » Sun Jun 27, 2021 8:15 pm

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Que: John sold his car at a loss of 20 percent of the price that he originally paid for the car, and then bought another car at a price of 40 percent less than the price he originally paid for his first car. If he sold the first car for $16,000, what was his net gain, in dollars, for the two transactions?

(A) $3,000
(B) $4,000
(C) $4,800
(D) $16,000
(E) cannot be determined
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Re: Que: John sold his car at a loss of 20 percent of the price that he originally paid for the car,.....

by Max@Math Revolution » Tue Jun 29, 2021 9:12 pm
Solution: Selling Price of the first car: $16,000.

This was sold at a 20 percent loss. This means C.P. * \(\frac{80}{100}\) = 16,000.

C.P. of the first car: 16000 * \(\frac{100}{80}\) = 20,000

C.P. of second car: 40 percent less than the C.P. of first car: 20,000 * \(\frac{60}{100}\) = 12,000

=> C.P. 1 = 20,000

=> S.P. 1 = 16,000

=> Loss 1 = 20,000 – 16,000 = 4,000

=> C.P. 2 = 12,000

=> Gain in second car: 20,000 – 12,000 = 8,000

Overall gain: 8,000 – 4,000 = 4,000

Therefore, B is the correct answer.

Answer B
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