Nikhil sold two steel chairs for Rs. 500 each. On one he gains 25% and one other, he loses 20%. How much does he gain or lose in the whole transaction?

A 1.5 % gain

B 2 % gain

C 2.43 % loss

D 2 % loss

E None of these

Correct Answer: Option C

S.P of the 1st chair = Rs. 500

Gain on the 1st chair = 25%

∴ C.P of the 1st chair \(= \;\frac{{500 \times 100}}{{100 + 25}} = \frac{{50000}}{{125}} = 400\)

S.P of the 2nd chair = Rs. 500

Loss on the 2nd chair = 20%

∴ C.P of the 2nd chair \(= \;\frac{{500 \times 100}}{{100 - 20}} = \frac{{50000}}{{80}} = 625\)

Now, S.P of both the chairs = Rs. 1000

C.P of both the chairs = 400 + 625 = Rs. 1025

∴ Net Loss = 1025 – 1000 =25

As we know, Gain percentage \(= \;\frac{{gain}}{{C.P}} \times 100\)

\(\begin{array}{l} = \;\frac{{25}}{{1025}} \times 100\\ = \;\frac{1}{{41}} \times 100\\ = \;\frac{{100}}{{41}} = 2.43 \end{array}\)

Hence, he has loss of 2.43% on the whole transaction.