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Answer: (C) 1680
Explanation
The overall gain or loss percentage for two successive transactions can be calculated using the net change formula x + y + ˣʸ⁄₁₀₀, where x and y represent the percentage changes. In this case, the first transaction is a 20% loss (x = -20) and the second transaction is a 30% gain (y = +30).
Net percentage change = -20 + 30 + (-20 × 30)/(100) = 10 - 6 = 4%.
Since the result is positive, there is an overall gain of 4% on the initial investment. The total gain in rupees is: Overall Gain = 42000 × ⁴⁄₁₀₀ = 1680.
Alternatively, the first selling price is 42000 × 0.80 = 33600. This amount is used to purchase the second item, which is then sold for 33600 × 1.30 = 43680. The overall gain is the final amount minus the initial cost: 43680 - 42000 = 1680.