Question

A used car dealer sold two cars for $1980 each. On the first car he made a 10 percent profit. On the second car he took a loss of 10 percent. Taken together, did he profit or lose on the deals?

Answer 1

Explanation:

Neither. He came out even. The profit made on the first sale was exactly wiped out by the loss on the second sale.

Answer 2

Answer: he neither made profit nor loss on both deals

Explanation:

The cost of the first car sold by the car dealer is $1980. On the first car he made a 10 percent profit. This means that the profit made on the first car would be

10/100 × 1980 = 0.1 × 1980 = $198

Amount for which he sold the first car would be

1980 + 198 = $2178

The cost of the second car sold by the car dealer is $1980. On the second car he made a 10 percent loss. This means that the loss made on the second car would be

10/100 × 1980 = 0.1 × 1980 = $198

Amount for which he sold the second car would be

1980 - 198 = $1782

Total cost of both cars = 1980 + 1980 = $3960

Total selling price = 2178 + 1782 = $3960

Profit or loss = selling price - cost price. Therefore

Profit or loss = 3960 - 3960 = $0