A person sold two watches for Rs 5500 each. In the sale of the first watch, he made a profit of 20% and in the sale of the second watch, he incurred a 20% loss. What is his gain or loss percentage in total?

A person sold two watches for Rs 5500 each. Watch 1 was sold at a 20% profit and Watch 2 was sold at a 20% loss.

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For Watch 1 (20% profit):

When an item is sold at 20% profit, the selling price is 120% of the cost price.

$SP = CP \times 1.2$

$5500 = CP \times 1.2$

$CP = \dfrac{5500}{1.2}$

$CP = \dfrac{55000}{12}$

$CP = Rs \, 4583.33$

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For Watch 2 (20% loss):

When an item is sold at 20% loss, the selling price is 80% of the cost price.

$SP = CP \times 0.8$

$5500 = CP \times 0.8$

$CP = \dfrac{5500}{0.8}$

$CP = \dfrac{55000}{8}$

$CP = Rs \, 6875$

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Total Cost Price $= 4583.33 + 6875 = Rs \, 11458.33$

Total Selling Price $= 5500 + 5500 = Rs \, 11000$

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Since Total Selling Price $<$ Total Cost Price, there is a loss.

Loss $= 11458.33 - 11000 = Rs \, 458.33$

Loss Percentage $= \dfrac{458.33}{11458.33} \times 100$

Loss Percentage $= 4\%$

Therefore, the overall result is a 4% loss.