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A cycle dealer in Meerut sells two cycles for ₹4800 each. On one he gains 20% and on the other he loses 20%. Taking the two sales together, what is the result?

Class 8Comparing QuantitiesComparing Quantities
  • AHe breaks even
  • BHe gains ₹400
  • CHe loses ₹400
  • DHe loses ₹1920

Step-by-Step Solution

Find each cost price. Gain cycle: CP = . Loss cycle: CP = . Total CP = 10000 against total SP = 9600, so he loses ₹400. Trap: the two 20% figures do not cancel, because they are percentages of two DIFFERENT cost prices; ₹1920 is 20% of the total selling price.
Answer: C) He loses ₹400

Key idea: Discount

A discount is a reduction off the **marked price** (MP), not the cost price. The selling price (SP) is what the customer actually pays.

**SP = MP − Discount**
**Discount % = (Discount / MP) × 100**

Example: shirt MP ₹800, discount 25%. Discount amount = 25% of 800 = 200. SP = 800 − 200 = 600.

Note: discount % is calculated on MP. Profit/loss % (Class 7) is on CP. Don't mix them up.

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