Question

a man purchased a used car for $1000. He decided to sell the car for 20% above his purchase price. He could not sell the car so he reduced his asking price by 20%. If he sells the car at the reduced price, will he have a profit or a loss or will he break even?​

Answer 1

ok so they purchased price of the car is $1000 and the asking price will be 20% of $1000 so $1000 is a 100% so to get 20% of $1000 it will be 100% + 20% to get 120 percent so the asking price is 120 per cent of $1000 so 120 percent of $1000 is equals to 1200 dollars then you are told that he could not sell it by that price so he reduced it by 20% so this $1200 is 100% so he reduced it by 20% so it will be 100% - 20% to get 80% so this person sold his car at 80% so we will get 80% of $1200 and we will get $960 so he made a loss of $40

Answer 2

Purchase price = 1000
20% above 1000 = 200, 1000 + 200 = 1200
20% below 1200 = 240, 1200 - 240 = 960

1000 - 960 = $40 loss