Question

Robin purchased an old car for Rs.73,500. He spent Rs.10,300 on repairs and paid Rs.2,600 for its insurance. Then he sold it to a mechanic for Rs.84,240. What was his percentage gain or loss?

a. 5%
b. 10%
c. 15%
d. 20%

Answer 1

Robin incurred a loss of 2.5% on the sale of the car, as the selling price was lower than the total cost. The correct answer is none of the provided options.

Step-by-step explanation:

Robin purchased an old car for Rs.73,500, spent Rs.10,300 on repairs, and Rs.2,600 for insurance, then sold the car for Rs.84,240. To calculate Robin's percentage gain or loss, we must first determine his total cost and then compare the selling price to this total cost to find the difference.

The total cost is the sum of the purchase price, repairs, and insurance:

Total Cost = Purchase Price + Repairs + Insurance

Total Cost = Rs.73,500 + Rs.10,300 + Rs.2,600

Total Cost = Rs.86,400

Next, we find the difference between the selling price and the total cost:

Profit/Loss = Selling Price - Total Cost

Profit/Loss = Rs.84,240 - Rs.86,400

Profit/Loss = -Rs.2,160

Since the result is negative, Robin incurred a loss. To find the percentage loss, we divide the loss by the total cost and multiply by 100:

Percentage Loss = (Loss / Total Cost) × 100%

Percentage Loss = (Rs.2,160 / Rs.86,400) × 100%

Percentage Loss = 2.5%

Therefore, the correct answer is none of the options given as Robin's percentage loss is 2.5%.