A trader sells two toys for equal selling prices. On one he makes 22% profit and on the other 22% loss. What is the net loss percentage?
Explanation
The complete calculation confirms 5.84% Loss as the correct option. Apply the profit or loss multiplier to cost price: SP = CP(1 ± rate/100). For this question, identify every monetary base before applying a percentage. The question-specific working supplied in the record is: When gain% and loss% are equal and SP is same, Net Loss% = (x/10)^2. Net Loss = (22/10)^2 = 4.84%.. Profit and loss questions become unreliable when a percentage is applied to the wrong base. Profit or loss percent uses cost price, while discount percent uses marked price. If several changes occur, convert each change into a multiplier and apply them in order. The distractors 6.84% Loss, 4.84% Loss, 3.84% Loss can result from interchanging cost price and selling price, treating discount as loss, adding successive rates, ignoring quantity, or rounding before the final step. A dependable check is to assume cost price 100 whenever only percentages are involved, reconstruct the selling value, and compare the resulting ratio with the selected option. Also verify direction: profit requires selling price above cost price, whereas loss requires it below cost price. In marked-price problems, a discount can coexist with profit because marked price and cost price are different bases. This method preserves the numerical relationships in the stem and develops formula selection, percentage-base recognition and option elimination for SSC, Railway, Banking and other competitive aptitude examinations.