Successive discounts, repair, and resale — A dealer buys an item marked ₹ 25,000 with successive discounts of 20% and 5%, spends ₹ 2000 on repairs, and sells it for ₹ 25,000. What is his overall gain or loss percentage?

Introduction / Context: Here we combine successive discounts on the list price, an additional repair outlay, and a final sale price to determine the net percentage result. Successive discounts multiply, not add, and the final profit is compared against the effective cost including repairs.

Given Data / Assumptions:

• List price = ₹ 25,000.
• Discounts: 20% then 5% ⇒ net multiplier = 0.80 * 0.95.
• Repair cost = ₹ 2000 (added to purchase cost).
• Final SP = ₹ 25,000.

Concept / Approach: Effective purchase cost = 25,000 * 0.80 * 0.95. Add repairs to get total cost. Profit% = (SP − total cost)/total cost * 100.

Step-by-Step Solution:

Verification / Alternative check: Reverse: 21,000 * 1.1905 ≈ 24,999.5 ≈ 25,000 (rounding explains the small decimal).

Why Other Options Are Wrong: The “loss” options contradict positive profit; 25% is too high; 12% gain is too low.

Common Pitfalls: Adding discounts (20% + 5% = 25%) instead of compounding (actual 24% off), or forgetting to include the repair cost in the total cost base.

Final Answer: 19.05% gain