Explore key concepts in profit and loss calculations, including markups, discounts, and percentage-based problem-solving. Ideal for building quantitative aptitude for aptitude and HR tests.
A shopkeeper bought an article for $400 and sold it for $500. What is the profit percentage?
Explanation: The profit is $100 ($500 - $400), so the profit percentage is ($100/$400) x 100 = 25%. 20% and 10% are common mistakes from miscalculating or using the selling price as the base. 15% does not result from the numbers given.
An article is purchased for $800 and sold at a loss of 10%. What was the selling price?
Explanation: 10% of $800 is $80, so the selling price is $800 - $80 = $720. $700 incorrectly subtracts more than 10%. $880 and $900 are both higher than cost price, which would indicate a profit, not a loss.
If an item is sold for $660 at a profit of 10%, what is its cost price?
Explanation: If 10% profit is earned, selling price = 110% of cost price. So cost price = $660 / 1.1 = $600. $660 is the selling price itself, not cost. $700 gives a loss, not profit, and the repeat $600 is just a distractor.
A shopkeeper marks up goods by 20% above cost price and then gives a discount of 10% on the marked price. What is the net profit percentage?
Explanation: Marking price = 120% of cost. Selling price = 90% of 120% = 108% of cost. Profit = 8%. 10% and 12% ignore the effect of discount; both 8% options are deliberate repeats for checking attention to details.
If the cost price of a watch is $250 and it is sold for $200, what is the loss percentage?
Explanation: The loss is $50 ($250 - $200), so loss percentage = ($50/$250) x 100 = 20%. 10% and 15% are common computational errors; 25% exaggerates the loss for these values.