Haider made a profit of 25% in the first year. Next year, he had a loss of 20% on the capital he had at the beginning of the second year. What was his overall loss?

A) 4% loss

B) 5% gain

C) 5% loss

D) 0%

Let Haider has x rupees

First-year = x + 25% of x 

                 =  x + (25/100)* x 

                 =  (125/100)x

Next year = (125/100)x – 20% of (125/100)x

                  = (125/100)x – (20/100)* (125/100)x

                  = 100x/100 = x 

The rupees after  second year= x, so total loss 0%