Question

A used-car dealer sold one car at a profit of 25 percent of the dealer's purchase price for that car and sold another car at a loss of 20 percent of the dealer's purchase price for that car. If the dealer sold each car for $20,000, what was the dealer's total profit or loss, in dollars, for the two transactions combined?

Answer 1

total loss is $1000

Explanation:

given data

profit = 20 %

loss = 20 %

selling = $20000

To find out

dealer's total profit or loss

solution

first we find profit of 1 car i.e.

profit = selling - purchase price

purchase price of 25 % profit i.e. purchase price *1.25 = selling price

purchase price = 20000/1.25

purchase price = 16000

so profit = 20000 - 16000

profit = $4000

now we calculate loss price

loss = purchase price - selling price

purchase price * 0.8 = selling price

purchase price = 20000/0.8 = 25000

loss = 25000 - 20000

loss = $5000

total purchased price = 16000 + 25000

total purchased price = $41000

total selling price = 20000 + 20000

total selling price = $40000

so total loss = $41000 - $40000

total loss is $1000