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.