Question

John buys a phone for $4 500 and sells it to his brother who pays him in three instalments of $1 200.
(a) Determine with the appropriate working if John made a profit or a loss. [2] (b) What was his percentage profit/loss?

Answer 1

a. John made a loss. (3 x 1200 = 3600. He sold it to his brother for 3600)

b. 3600/4500 = 0.8 = 80%. 100-80 = 20. Percentage loss = 20%