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?

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

Total cost = N(250,000 + 70,000) = ₦320,000
Selling price = ₦400,000 (given)
Gain = SP - CP = N(400,000 - 320,000) = ₦80,000
Gain % = gain/CP x 100 = (80,000/320,000) x 100
Gain % = 25%