A car dealer bought a second-hand car for ₦250,000 and spent ₦70,000 refurbishing it. He then sold the car for ₦400,000. What is the percentage gain?

Answer Details

The dealer bought the car for ₦250,000 and spent ₦70,000 refurbishing it, for a total cost of: Total cost = ₦250,000 + ₦70,000 = ₦320,000 The dealer then sold the car for ₦400,000. The profit made by the dealer is the difference between the selling price and the cost price: Profit = Selling price - Cost price Profit = ₦400,000 - ₦320,000 = ₦80,000 The percentage gain is the profit expressed as a percentage of the cost price: Percentage gain = (Profit / Cost price) x 100% Substituting the values we get: Percentage gain = (₦80,000 / ₦320,000) x 100% Percentage gain = 0.25 x 100% Percentage gain = 25% Therefore, the percentage gain made by the dealer is 25%, and the answer is.