Profit, Loss and Discount

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Profit, Loss and Discount:


Basic Terms:

  • Cost Price – The price at which any item is bought is known as the cost price of that item.
    C.P. = 100 / (100 + Profit%) * S.P.
    C.P. = 100 / (100 – Loss%) * S.P.

 

  • Selling Price – The price at which any item is sold is known as the selling price of that item.
    S.P. = (100 + Profit%)/100 * C.P.
    S.P. = (100 – Loss%)/100 * C.P.

 

  • Profit – If selling price of any item is more than the cost price of the item then there is a profit on the selling the item.

Profit = Selling Price – Cost Price

  • Loss – If selling price of any item is less than the cost price of the item then there is a loss on the selling the item.

Loss = Cost Price – Selling Price

  • Discount – Sometimes shopkeeper gives you some rebate on items on selling to their customers. This rebate is known as discount and discount is known as rebate.

Formulas:

  • Percentage Profit =( Profit * 100 %) / CP
  • Percentage Loss =( Loss * 100 %) / SP
  • If there is a profit of x % on selling the item, then cost price of the item = SP * 100 / (100 + x) and selling price of the item = CP * (100 + x) / 100
  • If there is a loss of x % on selling the item, then cost price of the item = SP * 100 / (100 – x) and selling price of the item = CP * (100 – x) / 100

Aptitude Questions:

1. When an item is sold for Rs. 34.80 and there is a loss of 2%. What is the cost price of the item?

A)    Rs. 26.10

B)    Rs. 43

C)    Rs. 43.20

D)    Rs. 46.40

E)    None of these

View Answer

Answer: option (D)

Explanation:

C.P. = Rs. (100/75*34.80) = Rs. 46.40

 

2. Ram buys an old scooter for Rs. 4700 and spends Rs. 800 on its repairs. If he sells the scooter for Rs. 5800, then what is his profit percent?

A)    32/7 %

B) 60/11%

C) 10%


D) 12%

E) None of these

View Answer

Answer: option (B)

Explanation:

C.P. = Rs. (4700 + 800) = Rs. 5500
S.P. = Rs. 5800
Profit = S.P. – C.P. = 5800 – 5500 = 300
Profit% = (300/5500 * 100)% = 60/11%

 

3. The price of an item raised by 30% and then two successive discounts of 10% each are allowed. Ultimately the price of the item is:

A)    Increased by 10%

B)    Increased by 5.3%

C)     Decreased by 3%

D)    Decreased by 5.3%

E) None of these

View Answer

Answer: option (B)

Explanation:

Let the price of an item = Rs. x
Then, new price of an item after 30% increase = Rs. 130x/100 = Rs. 13x/10
Price of an item after 10% discount = Rs. 13x/10 * 90/100 = Rs. 117x/100
Now, the price of an item after second 10%
Discount = Rs. 117x * 90 / 10000
= Rs. 1053x/1000
Net change = 1053x/1000 – x = 53x/1000
Percentage Change = ((53x/1000)/x)* 100% = 5.3%

 

4. A woman buys a cycle for Rs. 2400 and sells it at a loss of 25%. What is the selling price of the cycle?

A)    Rs. 1090

B) Rs. 1160

C) Rs. 1800

D) Rs. 1202

E) None of these

View Answer

Answer: option (C)

Explanation:

S.P. = 75% of Rs. 2400 = Rs. (75/100 * 2400) = Rs. 1800

 

5. If selling price of an item is 4/3 of its cost price, the profit in the transaction is:

A)    16(2/3)%

b.) 20(1/2)%

c.) 25(1/2 )%

d.) 33(1/3 )1%

e.) None of these

View Answer

Answer: option (D)

Explanation:

Let C.P. = Rs. x. Then, S.P. = Rs. 4x/3, Profit = Rs. ((4x/3)- x) = Rs. x/3
∴ Profit% = (x/3* 1/x*100)%= 33(1/3 )%

 

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