Quantitative Aptitude – Profit and Loss
Profit and Loss is the most common and very important for the competitive exams. Questions from profit and loss will surely come in every competitive exams. And few problems from other chapter is also needed profit and loss to solve.
Now we will discuss all basics of Profit and Loss. This will brush up your knowledge of this chapter.
What is Profit and Loss ?
Before explain what is profit and loss, you need to know what is cost price and what is selling price.
Cost Price (C.P.): Cost price is the price at which an object is purchased.
Selling Price (S.P.): Selling price is the price at which an object is sold.
For example, A book shop owner purchased a book for Rs.90/- and sells the book for Rs.100/-. So, the Cost price or C.P. here is Rs.90/- and Selling price or S.P. is Rs.100/-.
What is Profit ?
Definition: If the selling price is greater than the cost price, the difference amount of selling price and cost price is called Profit or Gain.
So, Profit = Selling Price – Cost Price
In the above example cost price of the book was Rs.90/- and selling price of the book was Rs.100/-. S.P. is greater than the C.P. here. So, it is a profit.
Therefore,
Profit = S.P. – C.P.
Profit = 100 – 90
Profit= 10
So, the book seller earns Rs.10/- profit by selling the book.
What is Loss ?
Definition: If the selling price is less than the cost price, the difference amount of selling price and cost price is called Loss.
So, Loss = Cost Price – Selling Price
In the above example cost price of the book was Rs.90/- and selling price of the book was Rs.100/-. Suppose the book seller sale that book for Rs.75/-. So here S.P. is lesser than the C.P. So, it is a loss.
Therefore,
Loss = C.P. – S.P.
Loss = 90 – 75
Loss= 15
So, the book seller loss Rs.10/- by selling the book.
Basic Formulas of Profit and Loss
- Profit = Selling Price – Cost Price
- Loss = Cost Price – Selling Price
- Profit Percentage = (Profit x 100) / Cost Price
- Loss Percentage = (Loss x 100) / Cost Price
- Selling Price = ((100 + Profit %) / 100) x Cost Price
- Selling Price = ((100 – Loss %) / 100) x Cost Price
- Cost Price = (100 / (100 + Profit %)) x Selling Price
- Cost Price = (100 / (100 + Profit %)) x Selling Price
Few Examples of Profit and Loss
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So, we hope you can now do any kind of problem using the above rule. If you need any farther help on this chapter, then please let us know. We will discuss on those problems here in www.AptitudeTricks.com.