devinawilliam83 wrote:
kostyan5 wrote:
Assume trader started with X amount of money. After buying, he had 1.2X. After selling he had 1.25(1.2X) = 1.5X. So he made 50%.
The logic i was using was as follows :
original Price (OP) was 100 units @ 1/- . OP= 100/-
Buying price - 120 units for 100/- (he used false measures, hence reducing the quantitiy and not the amount)
selling price - 90 units for 100/-
Gain = SP-BP = (100/90) - (100/120) = 10/36
Gain% is gain/BP = (10/36)/(100/90) = 25%
What is wrong with what I am doing ?Thanks in advance
Remember that the gain is in terms of money, not in terms of units.original Price (OP) was 100 units @ 1/- . OP= $100/-
Buying price - 120 units for $100/- (he used false measures, hence reducing the quantitiy and not the amount)
The value of 120 units is $120 so his gain is $20/$100 = 25%selling price - 90 units for 100/-
Gain = SP-BP = (100/90) - (100/120) = 10/36
Gain% is gain/BP = (10/36)/(100/90) = 25%When he sells, he gains 25% by using false measures.
For $100, he should have given the customer 100 units but he gives only 80 units to get a 25% gain.
His cost price of 80 units is $80 and selling price is $100 so gain = 20/80 * 100 = 25%
So he sells 80 units for $100
He will sell 120 units for $(100/80) * 120 = $150
How much did he pay for these 120 units? Only $100 (again because he used false measures)
Gain = (50/100) *100= 50%
You can also do this directly. There are 2 consecutive gains -> 20% and 25%
Overall gain = a + b + ab/100 = 20 + 25 + 20*25/100 = 50%
To check out how we arrive at this formula, see:
http://www.veritasprep.com/blog/2011/02 ... e-changes/
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