A trader bought an item for 500 and sold it for 450. What is his loss%

Question

Accepted Answer

The correct option is 2:

To solve this problem, we need to calculate the loss percentage. First, we identify the cost price (CP) and selling price (SP) from the given information. Then, we calculate the loss incurred, and finally, we use the loss percentage formula.

Key Concepts:  * Cost Price (CP): The price at which an item is bought.
  * Selling Price (SP): The price at which an item is sold.
  * Loss: Occurs when the Selling Price is less than the Cost Price. It is calculated as $Loss = CP - SP$.
  * Loss Percentage (Loss%): The loss expressed as a percentage of the Cost Price. It is calculated as $Loss% = (\frac{Loss}{CP}) 	imes 100$.Step-by-step explanation:1.  **Identify the Cost Price (CP) and Selling Price (SP):**
    Given, the trader bought an item for 500. So, $CP = 500$.
    Given, the trader sold the item for 450. So, $SP = 450$.

2.  **Calculate the Loss:**
    Since $SP \< CP$, there is a loss.
    $Loss = CP - SP$
    $Loss = 500 - 450$
    $Loss = 50$

3.  **Calculate the Loss Percentage:**
    $Loss% = (\frac{Loss}{CP}) 	imes 100$
    $Loss% = (\frac{50}{500}) 	imes 100$
    $Loss% = (\frac{1}{10}) 	imes 100$
    $Loss% = 10%$Therefore, the loss percentage is 10%. Option 2, which states 10%, is the correct answer.

The incorrect option is 1 (100%): This would imply that the loss is equal to the cost price, meaning the item was sold for 0, which is not the case here.
The incorrect option is 3 (90%): This value is likely derived from calculating $\frac{SP}{CP} 	imes 100$, or a similar misconception, rather than the loss percentage.
The incorrect option is 4 (1%): This is a significantly smaller percentage than the actual loss and suggests an error in calculation or understanding the formula.