Explore key concepts of profit, loss, and simple interest with scenario-based questions that strengthen your understanding of financial calculations. This quiz focuses on essential formulas, percentage-based reasoning, and common real-world situations for improved quantitative skills.
A shopkeeper buys a watch for $250 and sells it for $325. What is the percentage profit made on the transaction?
Explanation: The profit is calculated by subtracting the cost price from the selling price: $325 - $250 = $75. The profit percentage is ($75/$250) x 100 = 30%. Option '25%' results from using the wrong profit amount, while '75%' comes from dividing by the selling price, and '15%' is simply a common distractor. Therefore, 30% is the correct answer because it applies the correct formula using cost price as the base.
If a trader sells a mobile phone at a loss of 10%, and the cost price was $500, what is the selling price of the mobile phone?
Explanation: A 10% loss on $500 means the loss is $50 (10% of $500). So, the selling price is $500 - $50 = $450. '$550' implies a profit was made, not a loss. '$490' is derived from a lower percentage loss, and '$400' overstates the loss. Thus, $450 is correct since it precisely reflects a 10% loss from the original cost.
What is the simple interest earned on $800 at 6% per annum for 3 years?
Explanation: Simple interest is calculated as Principal × Rate × Time ÷ 100. Here, $800 × 6 × 3 ÷ 100 = $144, making it the correct answer. '$180' uses an incorrect formula, '$48' is the interest for only one year, and '$24' is for an even shorter period. '$144' accurately reflects the full three-year term at the given rate.
If an item is sold for $630 at a 10% loss, what was its original cost price?
Explanation: Let the cost price be X. Selling at 10% loss means $630 = 90% of X. So, X = $630 / 0.9 = $700. '$567' is lower and results from dividing by 1.1 (wrong method), '$693' comes from a simple addition, and '$720' is mistakenly assumed as a profit calculation. Thus, $700 correctly reflects the cost price at a 10% loss.
A book is sold at a profit of 20%. If it were sold for $36 less, the shopkeeper would have lost 10%. What is the cost price of the book?
Explanation: Let the cost price be $100. At 20% profit, selling price = $120. If sold for $36 less, S.P. = $84, which is a 16% loss ($100 - $84 = $16). However, for a 10% loss, S.P. should be $90. The $36 difference confirms that the cost price is $100. '$120' is confused with the selling price, '$90' is the selling price at a loss, and '$80' results from using incorrect percentages. Thus, $100 accurately represents the cost price.