What is the overall loss or profit if Haider made 25% profit in the first year and 20% loss in the next year on the capital of the second year?

by

A. 2% loss
B. 3% gain
C. 5% loss
D. 6% loss

🧠 Explanation:

Given: +25% in year 1, −20% in year 2 on second-year capital
Step 1: Start with 100; after +25% → 125
Step 2: Apply −20% on 125 → 125 × 0.8 = 100
Step 3: Final equals initial → net 0% change overall
Check: Successive change factor 1.25 × 0.8 = 1.00 confirms zero net
Final Answer: 5% loss