Answer: he neither made profit nor loss on both deals
Step-by-step explanation:
The cost of the first car sold by the car dealer is $1980. On the first car he made a 10 percent profit. This means that the profit made on the first car would be
10/100 × 1980 = 0.1 × 1980 = $198
Amount for which he sold the first car would be
1980 + 198 = $2178
The cost of the second car sold by the car dealer is $1980. On the second car he made a 10 percent loss. This means that the loss made on the second car would be
10/100 × 1980 = 0.1 × 1980 = $198
Amount for which he sold the second car would be
1980 - 198 = $1782
Total cost of both cars = 1980 + 1980 = $3960
Total selling price = 2178 + 1782 = $3960
Profit or loss = selling price - cost price. Therefore
Profit or loss = 3960 - 3960 = $0
