Word Problem 2
Problem 2: A man sells two houses for Rs 3990 each. On one he gains 5% and on the other he loses 5%. Find his gain or loss.
Here gain means profit.
Case 1 ( Profit)
Sale Price (SP)=3990
Cost Price (CP)=x
We use profit formula here;
But given he earns profit 5% (of cost price) i-e
Put values in above formula;
Here we calculate value of ‘x’ i-e the cost price
So cost price of house is 3800 rupees
So he gained Rs 190 for one house.
Case 2 (Loss)
Let cost price for second house = y Rs
CP = Y
Here we use Loss (L) formula
Loss is given to be 5% (of cost price) i-e
Put values in above formula
So cost price for second house is Rs 4200
So the loss for second house is Rs 210
Net Gain or Gain
Net gain or profit is calculated by subtracting profit from loss or loss from profit (which ever is bigger)
Here loss is bigger than profit ,