To determine the percentage gain from the sale of the car, we need to follow a series of steps to calculate the total cost, the profit made, and then the percentage gain based on that profit. Let's break it down step-by-step. ### Step 1: Calculate the Total Cost The total cost of the car includes the purchase price and the refurbishment costs. - **Purchase Price of the Car**: N250,000 - **Refurbishment Costs**: N70,000 To find the total cost, we add these two amounts together: \[ \text{Total Cost} = \text{Purchase Price} + \text{Refurbishment Costs} \] \[ \text{Total Cost} = N250,000 + N70,000 = N320,000 \] ### Step 2: Calculate the Selling Price The car was sold for N400,000. ### Step 3: Calculate the Profit Profit is calculated by subtracting the total cost from the selling price: \[ \text{Profit} = \text{Selling Price} - \text{Total Cost} \] \[ \text{Profit} = N400,000 - N320,000 = N80,000 \] ### Step 4: Calculate the Percentage Gain Percentage gain is calculated using the formula: \[ \text{Percentage Gain} = \left( \frac{\text{Profit}}{\text{Total Cost}} \right) \times 100 \] Substituting the values we have: \[ \text{Percentage Gain} = \left( \frac{N80,000}{N320,000} \right) \times 100 \] Calculating the fraction: \[ \frac{N80,000}{N320,000} = 0.25 \] Now, multiplying by 100 to convert it to a percentage: \[ \text{Percentage Gain} = 0.25 \times 100 = 25\% \] ### Conclusion The percentage gain from selling the car is **25%**. Therefore, the correct option is **C**. ### Explanation of Other Options - **Option A (60%)**: This option is incorrect because it suggests a much higher profit relative to the total cost. The calculations show that the profit is only 25% of the total cost. - **Option B (32%)**: This option is also incorrect. It does not align with the calculated profit margin based on the total cost and selling price. - **Option D (20%)**: This option is lower than the actual percentage gain. It underestimates the profit made from the sale of the car. ### Common Pitfalls - **Miscalculating Total Cost**: Ensure that all costs (purchase and refurbishment) are included. - **Incorrect Profit Calculation**: Always subtract the total cost from the selling price accurately. - **Percentage Calculation Errors**: Remember to multiply by 100 to convert the decimal to a percentage. ### Revision Summary - Total Cost = Purchase Price + Refurbishment Costs. - Profit = Selling Price - Total Cost. - Percentage Gain = (Profit / Total Cost) × 100. - The correct answer is **C (25%)**.