Preparing for DRDO CEPTAM Tier I - Profit and loss

Continuing our series on Quantitative Aptitude, we are back again with "Profit and Loss". In this post we will learn tricks and tips to solve these questions swiftly. After completing the test you can attempt free mock test.

Before we learn the shortcuts, lets familiarize ourselves with few terms we will use more often.

Cost price: Also known as CP, is the price at which we purchase the goods.

Selling Price: Also known as SP, is the price at which we sell the goods.

Profit: If our selling price is greater then cost price, then we make a profit.

Loss: If our selling price is less then cost price, then we are in loss.

Gain = Selling Price - Cost Price.

10% profit on an item means -
Cost : 100%;
Selling Price : 110%;
Profit = 10%;

10% loss on an item means -
Cost : 100%
Selling Price : 90%
Loss : 10%

So, in case of Gain:

Gain % = (Gain x 100/C.P)

Lets solve an example:

Example - 01: Ramesh purchased an item for 80 rupees and sold it for 100 rupees. What would be his profit?
Solution:
Applying above formula : 20 x 100/80 = 25%


Similarly, in case of loss:

Loss% = (Loss x 100/CP)

Lets solve an example on this:

Example - 02: Ramesh purchased an item for 200 and sold it for 180.What is the percent loss?
Solution:
Apply the formula we just learnt.
20 x 100/200 = 10%

How to find selling price in case of Gain:

Selling Price = (100 + Gain%) / 100 x CP

Lets solve an example based on above formula:

Example - 03: Ramesh bought an speaker for 1560 Rupees, and then sold it at 15 % profit. Find the selling price?
Solution:

115/100 x 1560 = 1794 Rupees.

How to find selling price in case of Loss:


Selling Price = (100 - Loss%) / 100 x CP

Example - 04: Ramesh bought an speaker for 1560 Rupees, and then sold it at 15 % loss. Find the selling price?
Solution:

By applying the above formula:

(100 - 15) / 100 x 1560 = 85/100 x 1560 = 1326 Rupees

How to find selling price in case of Loss:

How to find Cost Price in case of Gain:

Cost Price = 100 x Selling Price / (100 + Gain%)

Example - 05: Ramesh sold an item at 20% profit for 240 Rupees. What is the cost price?
Solution: Apply the above formula:

Cost price = 100x 240 / (100 + 20) = 200.

How to find Cost Price in case of Loss:

Cost Price = 100 x Selling Price / (100 - Loss%)

Example - 06: Ramesh sold an item at 10% loss for 180. What is the cost of that item?

Cost Price = 100 x 180 / (100 - 10) = 200.

Hope these tricks were helpful. Lets solve few more in the mock test section. Thank you.

In case you are looking for Practice sets on Quantitative Aptitude, Arihant's book is good option. You can check it here.