Friday, 4 December 2015

Profit and loss Formulas Problems and Tricks

Dear aspirant, All ibps bank exam and jobs recruitment test require in subject numerical ability section Profit and loss problems involves various terms like cost price, selling price, marked price etc. Basically, it is a difference between selling price and cost price. Cost price is the price paid to purchase an article or a product or we can say it is a cost incurred in manufacturing an article. Selling price is the price at which a product is sold.

Must read:
Quantitative Aptitude Quiz
Guide to Profit and loss Quantitative aptitude pdf

Various profit and loss formulas used in profit and loss:

1. Generally, profit is calculated as:
                   Profit or gain = Selling price(S.P) - Cost price(C.P)
2. Similarly, Loss = Cost price - Selling price 3. Gain percentage(%) = Gain * 100
                                     C.P.
4. Loss percentage(%) = Loss * 100
                                     C.P.
5. There is a direct relationship between selling price and cost price:
                    S.P. = 100 + Gain percentage * C.P. (In case of gain)
                                         100
                    S.P. = 100 - Loss percentage * C.P. (In case of loss)
                                         100
Example:

If an article is sold at gain of 27%, then by using first formula , you can find that S.P. is 127% of C.P.
Similarly, If an article is sold at loss of 18%, then by using second formula , you can find that S.P. is 82% of C.P.

6. If a person sells two commodities at same prices. On one he gains x% and loses x% on another, then as a whole he will be in loss and the loss percentage will be equal to:
       (Common gain or loss percentage)^2  = x^2
                           100                                 10

Note: Here is an example to find gain in case of dishonesty.
Problem 1: A dishonest dealer professes to sell his goods at cost price but he uses a weigh 960 grams for 1 kg. How too calculate gain percentage?

Solution: Gain percentage =          Error            * 100 = 40  * 100 (Ans in %)
                                         True value - Error              960

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