A man recently bought two aeroplanes, but afterwards found that they would not answer the purpose for which he wanted them. So he sold them for $600 each, making a loss of 20 percent on one machine and a profit of 20 percent on the other. Did he make a profit on the whole transaction, or a loss? And how much?
Answer
The man made a loss of $50.
The man must have paid $500 and $750 for the two aeroplanes, making together $1250; but as he sold them for only $1200, he lost $50 by the transaction.