A man sold two watches, each for Rs. 495. If he gained 10%

A man sold two watches, each for Rs. 495. If he gained 10% on one watch and suffered a loss of 10% on the other, then what is the loss or gain percentage in the transaction?

  1. No gain, no loss
  2. 1% gain
  3. (100/99)% loss
  4. 1% loss

Answer

Whenever a person has two things and sells one of them at a profit of x% and other at a loss of x%, there is always a loss of (x/10)2 %

So, in this case x = 10%. So,

Loss % = (10/10)2 = 1%

The correct option is D.