Profit/ Loss Q

[gijg]

Hi , I need help on this


Mr Lee bought a flat at $540,000 and he sold it to Mr Ong at a loss . Mr Ong then sold it at a profit to Mr Tan at $535,000. If the loss percentage on the cost of Mr Lee is equal to the percentage profit of Mr Ong on his cost, find the price Mr Ong paid for the flat . Thank You

[Jtutor]

Hi gijg,

I just joined as a newbie yesterday so I guess it might be too late for the solution you wanted. Nevermind I'm happy to share my workings as follow:

Let x be the % of loss or profit.
1st selling price (at a loss of x%) = (100-x)/100 * 540,000 = 5400 (100-x)
2nd selling price (at a profit of x%) = [5400 (100-x)/ 100] * (100+x) = 535,000
Simplify: 54 (100^2 - x^2) = 535,000
Solve for x => 9.62%
Hence, price that Mr Ong paid (1st selling price) => $488,052

Hope the above helps!

[Jtutor]

Oh I forgot to add a note:

The above type of P/L qns typically require a clear understanding of how to apply the cost base (ie 100%) correctly, and changing the base appropriately.
Pls feel free to let me know if I can be of any further help. I’ll try my best to respond ASAP.
Cheers!