Imran made a profit of 20 percent in the first year. Next year he had a loss of 25 percent on the capital he had at the beginning of the second year. What was his overall loss?

A) 12 percent
B) 10 percent

C) 5 percent

D) No loss

Solution.

Suppose Imran has x rupees

If he gain 20 percent profit

After one year rupees = X + 20% of X

X + 20X/ 100 = 110X + 20X / 100

120X/100

Now if he has lost 25% on 120X / 100 then

Rupees after seconds year

= 120X/100 – 25% of 120 X/100

=120X/100 – 25(120X)/10000

= 1200X-3000X/10000

= 9000X/10000

=9X/10=90X/100=90% OF X

Total lost = 100 – 90 =10

X = 10 % of X